Economic performance

For Repower, long-term economic success and its own profitability are of central importance. Repower recognises its responsibility to strive for economic development for itself and its stakeholders that is sustainable not only financially, but also socially and environmentally.

Impacts

A strong economic performance enables Repower to invest in infrastructure, improve the service to its customers, drive innovation and increase value for shareholders. It also enables Repower to make a financial contribution to the municipalities and the canton and secure jobs in the regions. The generation of energy, a contributor to Repower’s economic value creation, has different impacts, both actual and potential, on the environment (see climate change and changes to biodiversity and landscape).

Risks

Price trends and volatility on the energy market are not only the greatest opportunities, but also a significant risk for the Repower Group. Added to that is the risk of fluctuations in exchange rates.

Financial risk management defines the fundamentals for the definition and measurement of key risk indicators (KRIs). The Repower Group places particular emphasis on market, credit and liquidity risks. Market risk management involves continuously assessing the risk of price fluctuations in energy and related markets. Regular sensitivity analyses are carried out to ensure resilience to extreme market conditions. The risk management team calculates the total risk every day and informs the relevant departments accordingly about compliance with the KRIs.

Stable power grid thanks to accurate forecasts and flexible hydropower

In a power system, the energy generated must always match demand. The growing share of renewables makes this balancing act more difficult, increases costs and poses a challenge to grid stability. To counteract this, the Trading division has developed a forecasting tool in which the expected volume of renewables generated is updated every three hours with current weather data. The live generation performance of selected plants is continuously monitored, analysed and evaluated in a control centre. Repower’s flexible hydropower generation assets even out the difference between predicted and actual generation in real time.

Guidelines and due diligence

The board of directors is responsible for the Repower Group’s economic performance. It defines the financial targets and strategy, approves budgets and monitors financial performance in relation to the specified targets. The board of directors delegates operational responsibility to the executive board. The Repower Group complies with its own code of conduct, which includes provisions on fair market conduct, avoidance of conflicts of interest, data protection and correct accounting. More information on due diligence can be found in the Corporate governance section.

Measures

Repower has a robust financial planning system and monitors both market trends and internal performance indicators to identify potential risks at an early stage and respond to them promptly.

To ensure its long-term economic success, the Repower Group makes targeted investments in existing and new renewable generation and grid assets in Switzerland and Italy.

Measuring effectiveness

Economic performance is measured using various KPIs adapted to the respective area of activity. These are reported every month to the executive board and every quarter to the board of directors as part of the financial reporting process.

Direct economic value generated and distributed: The following table provides an overview of economic value creation:

In 2024, the most significant contribution to the overall result came from the international energy trading business. Timely hedging of production at fixed prices played a significant role in this. See the Comments on the financial results for more information.