Anticipating Costly Energy Transformation, EnBW's Manager Speaks Up
EnBW's CFO Urges Clear Energy Policy Framework for Germany's Energy Transition
Thomas Kusterer, the deputy chairman of the board and CFO of EnBW, has called on the German federal government to provide a clear and reliable energy policy framework to support the country's energy transition. In a series of demands, Kusterer emphasised the need for legislation on electricity grids and energy infrastructure, support for renewable energy sources, and stable regulatory conditions for EnBW's large investments in renewable energy and related infrastructure.
Kusterer's key demands include:
- Legislation on electricity grids and energy infrastructure: EnBW plans to invest up to €50 billion by 2030, and Kusterer stresses the importance of clear and supportive legislation for future investments [4].
- Support for renewable energy sources: EnBW is advocating for the development and integration of new renewable energy sources such as offshore wind farms and hydrogen-ready gas-fired power plants [1][3].
- Stable and sustainable regulatory conditions: These are essential for EnBW to finance and build projects like the 960 MW He Dreiht offshore wind farm and other green infrastructure projects [1][3].
- Alignment with EU taxonomy and green financing requirements: EnBW is committed to ensuring that at least 85% of new financing will be sustainable by 2030, reflecting a focus on decarbonization and sustainability [1].
Kusterer's calls for legislative clarity and supportive frameworks come amid concerns about supply security and affordability in the energy transition. The federal government aims to advance the construction of gas power plants with a capacity of 20 gigawatts by 2030, according to the coalition agreement.
In Stuttgart, the cheapest new customer offer for a three-person household with an annual electricity consumption of 4000 kWh is around 1201 euros gross (with a one-year contract term and price guarantee, including new customer bonus). However, EnBW is currently more expensive for gas, with the cheapest new customer offer around 2174 euros (including new customer bonus). Without the bonus, the cheapest offer is around 2394 euros. The same amount of gas costs around 2978 euros in EnBW's basic gas tariff.
EnBW is currently in a phase of historically high investments, having invested over three billion euros in the first six months of the year, a 25% increase from the first half of 2024. A study commissioned by EnBW from Aurora Energy Research suggests that the transformation of the energy infrastructure could cost up to 700 billion euros less than previously assumed by the Federal Network Agency.
Despite these investments, Kusterer warns that without more cost awareness, the acceptance of the energy transition in society could crumble, potentially putting the entire energy transition at risk. He did not provide specific details on how the 700 billion euros could be saved on electricity. Many consumers are already struggling with energy costs, and Kusterer is calling for a change of course in the energy transition to address these concerns.
References: [1] EnBW AG (2022). EnBW's Sustainable Financing Framework. Retrieved from https://www.enbw.com/en/investor-relations/sustainable-financing/ [2] EnBW AG (2022). EnBW's Climate Neutrality Strategy. Retrieved from https://www.enbw.com/en/company/strategy/climate-neutrality/ [3] EnBW AG (2022). He Dreiht Offshore Wind Farm. Retrieved from https://www.enbw.com/en/offshore-wind-farms/he-dreiht/ [4] EnBW AG (2022). EnBW's Investment Strategy. Retrieved from https://www.enbw.com/en/investor-relations/strategy/
- Given the substantial investments EnBW plans in the energy sector by 2030, totalling up to €50 billion, a clear and reliable legislative framework on electricity grids and energy infrastructure is essential to support these investments.
- In a bid to accelerate the energy transition and reduce costs, EnBW advocates for the development and integration of renewable energy sources, such as offshore wind farms and hydrogen-ready gas-fired power plants, which could potentially be financially sustainable within their investments in green financing.
