Report and outlook


The new wind farm in Lucera (Apulia) has been generating power since the autumn of 2012. The photos in this semi-annual report provide a glimpse of the latest plant in Repower's generation portfolio.


In January, Repower announced the measures it was introducing as part of its programme to enhance efficiency launched back in 2012. The measures included implementation of a parent company organisation with effect from 1 April 2013, the streamlining of organisational structures and the reduction in the headcount through redundancies, early retirement and natural attrition. Internal processes were also simplified and redundant activities eliminated. Not least of all, the efficiency programme includes plans to reduce investment volume considerably over the next 10-15 years, which will involve the streamlining of the project portfolio. The full effects of the efficiency programme will be felt in 2014. These measures will result in savings of around CHF 10 million a year for Repower. The first effects were already noticeable in the last half year, however, with operating expenses, for example, down by just under CHF 6 million. Furthermore, Repower was more cautious with investments in 2013 (CHF - 41 million).


To enhance its proven business model as a vertically integrated energy company with activities along the entire electricity value chain and activities in gas business, Repower is making a stronger commitment to forward-looking, innovative solutions for intelligent energy management and new technologies. While this may sound abstract, it took on concrete form in Repower's partnership with Swisscom that started at the beginning of the year. The joint venture company Swisscom Energy Solutions AG makes it possible for Repower customers to network their electrical heating systems in a virtual power plant that intelligently synchronises energy consumption, storage and generation. These system services contribute to grid stability and efficient electricity supply in Switzerland.

Repartner Produktions AG, which has been operational since 2012 with the involvement of Repower as the principal shareholder and eight energy supply companies, is also setting its sights on innovation and cooperation. The company, which gives energy supply companies access to procurement rights for diversified power generation, aims to gradually broaden its portfolio with investments in other plants. The conditions for securing an interest in the planned combined-cycle gas turbine power plant in Leverkusen are currently being clarified.

Another of Repower's innovative commitments is in the field of electromobility. In Italy, Repower introduced on the market in May the PALINA charging station for electric cars and scooters. PALINA is also on display in the automobile museum in Turin. In addition, customers have extensive e-mobility services at their disposal when they purchase electricity. The first step was also taken in this direction in Switzerland when a PALINA was put into operation for electric vehicles in Grüsch.

Repower is convinced that the energy reform can only be achieved through the intelligent networking of energy systems, and is to this end actively working on developing appropriate innovative solutions.


The economic and regulatory environment for pumped storage plants is currently very challenging and the outlook is difficult. Not under dispute, however, is the fact that as “electricity batteries” pumped storage plants are indispensable to the success of the energy reform over the short and long term. This is why Repower is moving ahead with the Lagobianco project. Lagobianco is well-positioned in terms of the foreseeable concession and project approval, as well as its technical layout. Further project development decisions will be taken during the course of the second half of the year.

The Chlus hydropower project in Lower Prättigau is another project faced with a competitive disadvantage due to the market distortions caused by subsidies granted to new renewables mentioned at the beginning of this section. If the overall, politically driven economic conditions remain uncertain, a hydropower plant that could make a substantial contribution to achieving the energy goals at federal and cantonal level would potentially be put at risk. Work on the concession project and on environmental impact statement level 1 continued in the first half of 2013. A public vote in this regard is scheduled for spring 2014 in the thirteen concession municipalities.

An important sub-goal was reached in the project to construct a combined-cycle gas turbine power plant in Leverkusen. In March the district government in Cologne made a preliminary decision on emissions control requirements and by doing so signalled the project's eligibility to receive approval. Other groundbreaking steps are planned for this year. Repower expects to be able to make an investment decision in the first quarter of 2014.


To guarantee the security of power supply, the European electricity mix has to be diversified and enough base load provided. This means that at least one more generation of conventional power plants is necessary. With this in mind, Repower is working with partners to develop a project to construct a modern coal-fired power plant in Saline Joniche in Calabria. After successful completion of the environmental impact assessment, the approval process is proceeding, headed by the Italian Ministry for Economic Development in cooperation with the region of Calabria and the local authorities.

The power plant planned in Italy, which will use the latest cutting-edge technology, is the subject of political discussions in Switzerland. Graubünden's electorate will vote on 22 September on an initiative launched by environmental organisations with the goal of blocking the Saline Joniche project. The initiative was overwhelmingly rejected by the parliament and the government of the Canton of Graubünden. Graubünden's parliament and government presented a counterproposal to the initiative. They emphasise that the initiative seriously undermines entrepreneurial freedom because Repower is planning its projects in line with its strategy in its various key markets, while carefully weighing up economic, environmental and supply-related aspects in their development. It goes without saying that Repower complies strictly with all the relevant applicable laws and completely upholds all environmental standards.

Management is convinced that if the initiative were accepted, Repower would lose its credibility as a reliable partner, particularly in Italy. Business activities in Italy, where Repower generates around half of its revenues and operating profit, would be restricted. This would also have negative consequences for Graubünden as a business location where Repower provides jobs and pays taxes, not least due to its international activities. In addition, this would create a worrying precedent for other economic and industrial sectors. Ultimately, the initiators would also not achieve their primary objective of preventing the go-ahead of the Saline Joniche project even if the initiative were accepted: Repower is only one of several shareholders in the SEI S.p.A. project company, which means that the project will go ahead even without Repower.

You can find in-depth information on the project at

Repower has another power plant project in the pipeline in Italy: the approval process for the Campolattaro pumped storage plant in the province of Benevento is currently under way and a decision is expected by the end of the year at the earliest. Repower plans to carry out this project with partners and is currently in talks with prospective candidates.

In addition to these projects, Repower takes its business responsibility seriously and continuously invests in upgrading existing plants. The Cavaglia power plant, for example, was comprehensively modernised at a cost of around CHF 4.6 million in 2013. The operational building in the Landquart substation were renovated at a cost of approx. CHF 2.8 million and a photovoltaic system installed on the roof. Regular investments are also made in grid infrastructure maintenance.


The extremely strained market environment will also persist in the second half of 2013 and in 2014. As a result, Repower assumes that conditions will continue to be very challenging and difficult to forecast in both the 2013 financial year and in 2014. Repower does not expect market prices to recover in the short and medium term. From the present vantage point, Repower stands by its stated expectation that operating income in 2013 will be similar to 2012. Other regulatory requirements and decisions as well as policy decisions may have a significant impact on the energy market in Switzerland and in Europe and in turn impact operating income. Existing generation facilities and ongoing projects have to be continuously assessed for their profitability based on new policy decisions.

Dr. Eduard Rikli
Chairman of the Board of Directors

Kurt Bobst