Why does BKW need a new strategy?
BKW’s current strategy only extends until 2026. So it’s time to look a little further into the future. In addition, the markets and needs of customers have changed massively in recent years. We are now responding to this.
What is at the heart of the new strategy?
The name “Solutions 2030” says it all: We want to offer our customers solutions that prepare them for the challenges of the energy transition.
Hasn’t BKW already been doing this?
Yes, but we want to focus even more strongly on sustainability. BKW is pursuing ambitious sustainability goals in the areas of climate, energy, nature and people with its “Solutions 2030” strategy. This means that we are reducing our emissions, systematically continuing the expansion of renewable energies, offering customized solutions for our customers, and increasing the energy efficiency of infrastructure and buildings. Our new strategy focuses on growth, excellence and sustainability.
«We want to offer our customers solutions that prepare them for the challenges of the energy transition.»
Why is this interesting for BKW investors?
First, BKW operates in markets that offer attractive growth opportunities. Second, BKW has an excellent track record. And third, investors are also encouraged to invest more sustainably. And we can offer this with our sustainability goals.
So by investing in BKW, shareholders are contributing to a renewable energy future?
Exactly. This also makes BKW attractive for green investment funds, which only invest in companies with a sustainable business model.
Have investors put pressure on BKW to become more sustainable more quickly?
The pressure for greater sustainability is increasing from all sides: From investors, capital providers, regulators. But also from our customers.
And our employees. They all want a sustainable BKW – and so do I. This is a major opportunity for us to continue to grow and remain attractive. BKW can not only offer more sustainable solutions that are actually in demand in the market, but also act as a sustainable company.
What specific sustainability goals has BKW set for itself with the new strategy?
In the social area, our employees are particularly important. That is why we are continuing to invest in occupational health and safety. And driving forward initiatives such as diversity and inclusion as well as skills, leadership and talent development. In addition, BKW will halve the CO2 intensity of its business activities in Scope 1 and 2 by 2030 compared to 2022. We want to achieve net zero in this area by 2040.
There is a lot to do – after all, BKW still has a stake in a coal-fired power plant in Germany.
That’s right. We are pursuing two paths to achieve our sustainability goals for climate and energy: On the one hand, we want to systematically expand renewable energy production. On the other hand, we have been saying for some time that we will phase out coal. We now have to find a viable way forward since we only have a minority stake in the coal-fired power plant and therefore have to coordinate with the other owners.
Alongside sustainability, growth is the second pillar of the new strategy. In which areas does BKW want to grow?
We want to grow strongly in the Energy Solutions business: We will selectively strengthen renewable energy production in this business segment, particularly with wind and solar in Switzerland and abroad. And we want to start expanding hydropower in Switzerland – even if we cannot put a new dam into operation by 2030. In addition, the installation of large batteries expands flexibilities.
Is BKW also considering the construction of a new nuclear power plant?
Not at this time. First, the construction of new nuclear power plants is still prohibited in Switzerland. Second, there are so many unanswered questions about this technology that it is simply not part of our strategy up to 2030. With “Solutions 2030,” we want to implement projects that are actually feasible. This will generate the revenue we need for our continued growth.
Where does BKW want to grow in the area of customized solutions for customers with high electricity requirements?
I’ll give you an example: A large bakery starts its ovens at two in the morning six days a week, resulting in very high electricity consumption well into the morning. The company needs very little energy for the rest of the day. We can offer this bakery electricity tailored to its consumption profile in the desired quality, such as completely renewable electricity. This is possible because we have a wide range of power plants that complement each other perfectly. We also know the markets very well.
Can’t other electricity companies do that?
Yes, of course. However, such supply contracts often have long terms. It is advantageous for customers to have a partner in BKW that is financially very stable. That gives them the certainty that BKW will be able to supply electricity even if there is turbulence in the markets.
What are your growth plans for Power Grid?
In the Power Grid business, we are growing in line with the grid expansion required for the energy transition. This is because the grid needs to be stronger in order to be able to connect solar systems, heat pumps and charging stations.
And in Infrastructure & Buildings?
In this business segment, we primarily want to grow organically: The demand for energy efficiency is increasing rapidly and we see major opportunities for BKW in this area. We are already the largest listed energy and infrastructure company in Switzerland. Investors can invest in the entire energy transition with BKW: From renewable energy production and trading to power grids and the efficient use of energy in buildings and infrastructure. However, the guiding principle of the new strategy is: Profitability before growth. In other words, we only want to grow where we can make a profit.
Alongside sustainability and growth, excellence is the third pillar of the “Solutions 2030” strategy. What does that mean?
Excellence means we want to continuously improve our processes. It is important that we maintain our current financial stability despite growth and do not take on any unnecessary risks. Risk management is key to our business. We also want to have a strong customer focus in all our activities. In some areas we are already performing very well, while in others there is still room for improvement.
Where does BKW still see room to improve its customer focus?
In Infrastructure & Buildings, we are already very close to our customers – including geographically. In the regulated business, there is still room to improve our customer focus, although there is less flexibility in this area. We want to be a company that people enjoy doing business with and that offers its customers a great experience.
The new strategy runs until 2030. What kind of company will BKW be then?
By 2030, we want to be a company that makes a significant contribution to the energy transition. We need all the elements mentioned so that we can implement our solutions in the market. This is why the strategy is called “Solutions 2030”: We want to position ourselves as results-driven and achieve success with our customers.
