Profitability in EnBW’s renewable energies division has fallen by 30% in 2024, mainly due to earnings from pumped storage power plants.
Adjusted EBITDA for the division was around €1.2bn.
The pumped storage facilities have been assigned to the renewable energies segment since 2024 as they qualify as environmentally sustainable under the EU Taxonomy.
The normalisation of the exceptional price levels for electricity from pumped storage power plants was a major factor in the lower earnings within the division, EnBW said.
The transition to a climate-friendly, decarbonized energy future requires high levels of investment, it added.
The company invested around €6.2bn in 2024, almost 30% more than in the previous year.
Around 85% of investment spending went on growth projects, such as the 960 MW He Dreiht offshore wind farm and the construction of hydrogen-ready, flexibly dispatchable gas power plants.
High levels of investment also went on the expansion of the electricity distribution and transmission grids. This also includes projects at EnBW subsidiary TransnetBW.
EnBW chief executive Georg Stamatelopoulos (pictured) said: “Our broad portfolio is what makes us successful. In the 2024 fiscal year, we achieved solid results that will enable us to continue our investment program.
“We always keep an eye on the overall system, understand every link in the value chain and are involved in almost every aspect of the energy industry.
“This enables us to react flexibly to market changes and external challenges.
“The goal is clear: The electricity sector is to be carbon-neutral by 2040, with EnBW making a significant contribution. On the way there, we believe that affordability, climate change mitigation and security of supply must be given equal weight. Only then will the transformation be successful.
“To this end, EnBW has retired or put into reserve a total of ten coal, oil and gas plants since 2013.
“Renewables now account for close to 59% of installed generation capacity – one year ahead of the strategic target of over 50% by 2025.
“The growing contribution from renewables is also reducing carbon emissions, with a 15% reduction in the carbon intensity of electricity generation compared to the previous year.”
Thomas Kusterer, EnBW’s deputy chief executive and chief financial officer, said: “The stable earnings are important in order to successfully drive the green transformation of our portfolio.
“We currently have over 1.5GW of renewable energy under construction and are investing heavily in the expansion of the transmission and distribution grids – above all in the SuedLink direct current line, which is scheduled to go into operation at the end of 2028.
“Thanks to our integrated portfolio, we are able to allocate investment among the segments for optimum return performance, resulting in solid financial performance and reliable returns.
“Our diversified lineup also allows us to smooth out market-driven fluctuations, thus increasing the resilience of our business and resulting in a balanced opportunity/risk ratio across the portion.”