REPOWER

Market Switzerland

Repower continues to evolve into a service company in Switzerland as well, with electric transport offerings and sales, grid, trading and generation-related services for third parties.

Sales & Marketing

The Sales & Marketing highlight of the first six months was the official market launch of the Plug'n Roll electric transport offering. It revolves around two charging stations with smart technology developed by Repower, PALINA and BITTA. Companies, hotels, local councils and commercial enterprises can install a charging point for guests and visitors with electric vehicles (EVs) and become part of the charging network. Drivers can use the Plug'n Roll app to find the next free charging station at any given moment. The idea behind Repower's services is to create an extensive EV charging infrastructure.

Repower also notched up a success as part of its partner strategy, selling another two per cent of its production investment company Repartner. Cantonal utility Elektrizitätswerk des Kantons Thurgau (EKT) got on board by acquiring a one per cent interest on 1 January 2016, and Rhiienergie raised its stake to two per cent. Under its reseller strategy Repower aims to forge long-term sales partnerships with additional energy supply companies.

At the end of June Repower sold its connecta ag, a subsidiary operating outside the group’s core business, to its management.

Grid

To guarantee security of supply, in the first half of 2016 Repower invested CHF 4.7 million in extending and renewing its grid infrastructure. Added to this was CHF 4.8 million invested in maintaining, monitoring and operating the grid. The availability of Repower's infrastructure has been high by Swiss standards for an alpine grid. It was possible to keep average system downtime below ten minutes in the first six months.

Ongoing digital transformation is increasingly affecting the grid as well. For example, Repower has developed its own technology to enable exclusively paper-free inspections in the future, with meaningful analysis possible thanks to directly available data on installations. Added to this, grid planning information and the geo-information system are available via mobile devices. These measures have enabled Repower to speed up job handling.

For the last year and a half Repower, Axpo and Elektrizitätswerk der Stadt Zürich (ewz) have been operating their high-voltage grids in northern Graubünden jointly. Experience has been very positive, with the partners able to improve the security of supply and harness synergy in terms of planning grid expansion. This is particularly important in the light of upcoming expansion projects within the framework of the federal 2050 energy strategy. Parallel to expanding the grid Repower invested in new technologies. A lot of work was put into the Smart Home solution, an all-inclusive package giving consumers incentives to use energy more efficiently.

In the first six months Repower also continued to plan the new merchant line between Castasegna in Val Bregaglia (Bergell) and Mese in Italy. The project, which Repower is developing in collaboration with ewz, is at the approval phase with the Swiss and Italian authorities. Repower expects the new line to be commissioned in 2019.

Trading

Trading on the Poschiavo floor had a subdued start to the 2016 financial year. The results of the market access business were less good than planned. Asset optimisation (trading for Repower’s own assets), by contrast, went better than expected. Repower was also able to build on its contacts with Swiss energy providers, who can buy portfolio and balance-group management services, wholesale market access and market information.

Generation and projects

At 306 gigawatt hours, Repower's own hydropower generation was slightly down on the prior year for project- and disruption-related reasons. In early 2016 the company embarked on converting the Morteratsch power plant on the basis of preparatory work done in autumn 2015. The plant is being comprehensively renovated at a cost of around CHF 10 million. Repower has adopted an innovative model to fund the renovation and operation of the new plant by entering into a strategic partnership with Reichmuth Infrastruktur Schweiz AG.

At the end of May Repower completed work at the Cavaglia power plant in the Valposchiavo to boost generation and make it eligible for the feed-in remuneration at cost (Kostendeckende Einspeisevergütung, KEV) scheme. Work was carried out for the Chlus and Taschinas 2 plants in connection with the approval process.

EBIT contribution

In the first six months of the year the Market Switzerland segment's contribution to group operating income (EBIT) came to CHF 13 million (CHF -5 million in the first half of 2015). Positive factors in this were an impairment gain at the Taschinas power plant (around CHF 5 million) and the release of provisions for long-term agreements (around CHF 5 million).

New Tech

In the first half of 2016 the NewTech team worked on developing a hardware platform enabling grid operators to deliver service offerings for their end-customers. Key capabilities are calculating, measuring and storing data, and communications and control. The Repower Group also implemented an innovation system to enable new areas of business to be built up by way of start-ups. Two promising projects are currently working to develop functional prototypes.

Germany

Repower's two wind farms in Germany posted good generation volumes totalling more than 23 gigawatt hours in the first half of 2016. The sales team in Switzerland also continued to operate successfully in Germany in the first six months. In Germany Repower focuses on custom offerings geared to municipal works and large customers in particular.