Report on activities

Strengthening cohesion

Employees from various locations and divisions meet up to attend further training modules. This offers them the opportunity to exchange ideas and experiences on an informal basis.

Work on project portfolio successfully driven forward

The current economic and energy policy landscape is not very conducive to the realisation of large-scale power generation projects: even if the Federal Council's energy strategy has set the course in Switzerland, concrete details of the legal framework conditions have yet to be defined. Urgently required spending on projects to upgrade and expand electricity generation is being delayed due to the lack of incentives to invest. Until renewable energy generation is promoted by feed-in tariffs rather than quota models, there will be little incentive to manage energy efficiently or to renovate the power generation portfolio as efficiently as possible. Repower is committed to generating electricity based on a mix of different technologies that is adjusted to the different markets. This is the only way to guarantee a secure supply under economically and ecologically acceptable conditions. In addition to intermittent wind and solar power, this also calls for controllable base and medium load as well as storage capacities. This belief is reflected in our power generation and project portfolio. We drove forward various projects in the Assets division in the period under review. The following projects and milestones deserve special mention:

  • Lucera wind farm: Construction work on the wind farm in Lucera (Apulia) is at an advanced stage. By the end of June, eleven of the wind farm's thirteen wind turbines with a total installed capacity of 26 megawatts had been erected. The wind farm is scheduled to go into operation in autumn 2012. The application for permission to expand the farm by another fifteen wind turbines is currently at the environmental impact assessment stage. Once it is up and running, Lucera will expand Repower's wind power portfolio to five wind farms with a total capacity of 73 megawatts.
  • Lagobianco pumped storage power plant: The request for concession approval for the planned 1,000-megawatt pumped storage power plant in Upper Poschiavo was submitted to the Graubünden cantonal government in November 2011, and has since been under review by the responsible departments. At the same time, Lagobianco SA is working intensively on various sub-projects in the technology, finance and environmental areas. At present the request for project approval is being drawn up for submission once the concession request has been approved. This covers the planning project as well as assessments of the environmental impact during construction (Environmental Impact Statement II). The current work also includes a search for investment partners and drilling tests in the project region to serve as a basis for further planning.
  • Chlus project: The aim of Repower's Chlus project in Lower Prättigau is to further increase the volume of electricity generated from hydropower. In the course of working out the technical details and conducting environmental assessments in spring 2012, the costs were found to be significantly higher than had originally been assumed. Repower is now looking into several options to reduce costs. Options will be analysed to determine whether, and if so which, adjustments are needed in order to guarantee the project's profitability. Repower continues to accord very high priority to the project and is planning to decide on an option by the end of the year in order to be in a position to submit the amended concession documentation to the political authorities as soon as possible.
  • Saline Joniche project: An important milestone was reached in the project for the coal-fired power plant in Saline Joniche (Calabria): In June the Presidency of Italy's Council of Ministers signed the environmental impact assessment ("Decreto di Valutazione d'Impatto Ambientale") for the planned power plant. The approval process is now entering the next phase, in which the region of Calabria will be closely involved.
  • Leverkusen combined cycle power plant: The project to build a 400-megawatt combined cycle power plant on the grounds of the chemical industry site in Leverkusen is at the core of our efforts to expand our own generation capacities in Germany. The first half of 2012 saw the launch of the approval process and virtual finalisation of the tendering documentation.
  • Investments in renovations to existing plants: Repower is investing in existing hydropower plants and in the grid infrastructure in various regions of the canton of Graubünden. The aim of this revision and renovation work is to ensure that the plants remain in good working order and to secure a reliable supply of electricity well into the future. Total investment spending on the projects, which are carried out between the end of 2011 and 2013, amounts to more than CHF 20 million.

Due to the lack of clarity concerning the future legal framework, the SüdWestStrom Kraftwerk GmbH decided on 19 July 2012 to discontinue planning work for the construction of a coal-fired power plant in Brunsbüttel. Repower had already fully written down its 36% interest in the project company at the end of 2011, having concluded that the project was unlikely to be implemented in the foreseeable future due to economic factors and the energy policy situation. The necessary steps have been taken to liquidate the project company.

Innovative sales and cooperation models

Sales activities underwent positive development in the first half of 2012. With its innovative offerings and products and its high-quality customer care, Repower positions itself successfully in the key markets. The "Verde Dentro" offering in Italy is attracting keen interest in the tourism industry and also, increasingly, in the commercial sector. Thanks to this comprehensive offering, Repower is among the pioneers of e-mobility in Italy.

In Switzerland, Repartner Produktions AG can look back on its first six months of operation. The model, which allows other energy providers to participate in a diversified power generation portfolio, is virtually booked out. In the period under review, Repower and the eight participating partners were able to purchase 24.5 gigawatt hours from the Taschinas hydropower plant and almost thirty gigawatt hours from the Lübbenau and Prettin wind farms. This is equivalent to the annual electricity consumption of 12,000 households. The generation volume is now being gradually expanded in line with the development of Repower's project portfolio.


The market environment will remain difficult in the second half of 2012. As things stand at present, we therefore continue to expect to end 2012 with lower operating results than in the previous year.

Dr. Eduard Rikli
Chairman of the Board of Directors

Kurt Bobst