Market Switzerland

Market Switzerland

Reducing dependence on low electricity prices by strengthening the sales and service business: in the first half of 2015 Repower in Switzerland redoubled its efforts to achieve this strategic objective.

Contribution to EBIT

The Market Switzerland segment's contribution to operating income (EBIT) in the first half of 2015 was CHF -5 million. This included impairments on hydropower generation assets totalling CHF 16 million and additional provisions on long-term agreements amounting to CHF 3 million. The extremely low price of electricity thus led to another drop in margins in the period under review. Trading in particular saw another sharp decline in margins compared with the prior-year period.

Generation and projects

Repower's hydropower assets in Canton Graubünden generated large amounts of electricity in the first six months of the year. However, this good utilisation could not make up for the fact that it was more or less impossible to sell this renewable electricity at a price sufficient to cover costs.

To improve the revenue situation, Repower is now endeavouring to take advantage of feed-in remuneration at cost (KEV) contributions when doing renovation work and making replacement investments, and is currently looking into how various generation assets could meet the criteria for the scheme.

Repower's Chlus hydropower project in the Prättigau/Graubünden Rhine Valley achieved another milestone in the first half of 2015 with submission of the request for concession approval. However, without subsidies the Chlus project lacks prospects of operating profitably and is not feasible as things stand.


Repower maintains and optimises its electricity grid in Graubünden on an ongoing basis to assure security of supply. The northern Graubünden grid alliance set up by Repower, Axpo and ewz is another step in this direction, helping reduce the costs of the transmission grid and creating synergy in terms of grid planning and expansion.

Work on a joint project with ewz to build a merchant line between Castasegna in Val Bregaglia (Bergell) and Mese in Italy is moving ahead, and is now at the approval phase.

Repower has also refined its existing ripple control system to optimise grid utilisation by allowing more effective distribution of load.


In the first half of 2015 margins continued to shrink at Trading in Poschiavo. Highlights of the period include the recent commissioning of the asset optimisation tool developed by Trading on behalf of the Swiss Federal Railways (SBB), and new partnerships with Swiss municipal utilities for wholesale market access and balance group management.

Sales & Marketing

A closer strategic focus on offering other energy providers and large customers services is paying off, and Repower has managed to extend its network in large parts of Switzerland.

Repartner Produktions AG has acquired a new shareholder: Thurgau utility Elektrizitätswerk des Kantons Thurgau (EKT) will hold a one per cent interest in the generation investment company.

In response to targeted communications, new customers have signed up for the intelligent storage network tiko. Repower is endeavouring to extend the network, which has been designated a flagship project by the federal government.

In June Repower presented its BITTA and PALINA charging stations and launched new electric vehicle subscriptions geared to corporations, commercial establishments, hotels, municipalities and private customers.


In the first half of 2015 Repower maintained intensive efforts to build its strategy and innovation team. The NewTech team's goal is to boost the entire organisation's powers of innovation and drive the development of new products and services.

To identify new areas of growth, NewTech is doing systematic trend, market and customer research, as well as screening start-ups and partner companies. Negotiations are currently under way with a number of companies. NewTech is also collaborating closely with individual business units to develop services around electric transportation, the digital transformation of the service landscape, and new tariff structures.


In May Repower sold its project to build a combined-cycle gas turbine plant in Leverkusen to STEAG GmbH. In the light of low energy prices, uncertainty surrounding subsidies and promotional mechanisms, and the removal of the floor on the EUR/CHF exchange rate, Repower opted to sell the project in its entirety.

At the beginning of July, Repower will complete the announced sale of its retail sales business in Germany, with Enovos Deutschland SE acquiring the sales portfolio from Repower Deutschland GmbH.

Germany remains very important for Repower as the biggest trading market in Europe. In addition to this, the company still has a portfolio of large customers in Germany that it serves from Switzerland, and it continues to operate its two wind farms in Lübbenau (Brandenburg) and Prettin (Saxony-Anhalt), which generated above-average volumes of electricity in the first six months of 2015.