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The Generation Segment covers the generation of electricity from thermal production capacities and renewable energy sources in Austria, Germany, Bulgaria and Albania as well as projects for the construction of power generation plants in Austria and Bulgaria. The sale of the generated electricity and the procurement of primary energy are reported under the Energy Trade and Supply Segment.

The earnings contributions from EVN’s investments in Verbund Innkraftwerke GmbH and EVN-WIEN ENERGIE Windparkentwicklungs- und Betriebs GmbH & Co KG are reported under the share of equity accounted investees with operational nature as part of EBITDA. The investment in Steag-EVN Walsum 10 Kraftwerksgesellschaft is included through proportionate consolidation.

Highlights 2015/16

  • Increase in energy production through greater use of thermal power plants to support network stabilisation
  • Decline in electricity production from renewable energy due to less favourable wind conditions
  • Earnings negatively affected by impairment losses in Austria and Germany
  • Improvement in EBITDA, EBIT and result before income tax

Development of power generation

Electricity generation rose by 1,016 GWh, or 24.8%, to 5,105 GWh in 2015/16. The production from renewable energy fell by 48 GWh, or 2.8%, year-on-year to 1,626 GWh, while the generation from EVN’s thermal power plants increased by 1,063 GWh, or 44.0%, to 3,479 GWh.

Wind flows were substantially lower and water flows slightly lower than the previous year, which led to a drop in the production volume from renewable energy. The first full year of operations at the 37-MW Prottes-Ollersdorf windpark and the commissioning of the Paasdorf-Lanzendorf windpark were unable to offset this decline.

The rise in electricity generation from thermal power plants resulted from the increased use of EVN’s power plants to stabilise the networks in Austria and Germany. As in the past four years, the Theiss and Korneuburg power plants provided reserve capacity for southern Germany also during the winter 2015/16 and, in addition, also provided reserve capacity for Austria during the summer 2016. The contracts covering the provision of these power plants will continue to the end of the winter half-year 2017/18. Production from the Duisburg-Walsum coal-fired power plant was also higher year-on-year in 2015/16.

At the Group level, EVN covered 32.1% of the electricity sold during the reporting year with its own production (previous year: 25.3%). The comparable value for Austria and Germany was 80.0% (previous year: 60.2%). The share of renewable energy in the Group’s total electricity production equalled 34.5% (previous year: 43.1%).

Revenue development

Revenue in the Generation Segment rose by EUR 8.6m, or 4.0%, to EUR 221.7m in 2015/16. The increase in revenue from the delivery of balancing energy, the management of shortages in Austria and the provision of reserve capacity for network stabilisation in southern Germany more than offset the volume- and price-related decrease in revenue from renewable generation.

Operating expenses

Operating expenses declined by EUR 6.2m, or 5.1%, to EUR 113.5m for the reporting year despite the higher costs for energy carriers due to the increased use of the thermal power plants. This resulted primarily from a positive one-off effect in the operating cost invoices from individual renewable energy generation plants.

Key indicators – Generation 2015/162014/15
nominal             %
Key energy business indicatorsGWh
Electricity generation volumes 5,1054,0891,01624.83,720
thereof renewable energy sources 1,6261,673–48–2.81,534
thereof thermal energy sources 3,4792,4161,06344.02,186
Key financial indicatorsEURm
External revenue 46.052.7–6.7–12.733.7
Internal revenue 175.7160.415.39.6153.8
Total revenue 221.7213.18.64.0187.5
Operating expenses –113.5––115.1
Share of results from equity accounted
investees with operational nature
Depreciation and amortisation including
effects from impairment tests
Results from operating activities (EBIT) 4.8–10.515.3–53.1
Financial results –22.4–18.2–4.2–22.9–25.3
Result before income tax –17.6–28.711.138.7–78.4
Total assets 1,094.51,157.2–62.8–5.41,218.2
Total liabilities 845.0959.1–114.0–11.91,034.7
Investments1) 33.854.4–20.6–37.988.9

Results from equity accounted investees

The share of results from equity accounted investees with operational nature fell by EUR 9.4m, or 38.3%, to EUR –34.1m. This decline resulted chiefly from two factors: the investment in Verbund Innkraftwerke GmbH and the resulting impairment loss recognised in the fourth quarter to reflect the latest assumptions for the future development of electricity prices and an impairment loss recognised to Shkodra Region Beteiligungsholding GmbH in connection with the Ashta hydropower plant.

Operating results

EBITDA in the Generation Segment totalled EUR 74.1m in 2015/16, a year-on-year increase of EUR 5.3m or 7.7%. Depreciation and amortisation, including the effects of impairment tests, declined by EUR 10.0m, or 12.6%, to EUR 69.2m, while current depreciation and amortisation remained nearly constant. The results of the impairment tests, which reflected the less favourable estimates for the long-term development of electricity prices, amounted to EUR –15.9m and were EUR 8.6m, or 35.3% lower than the previous year. Results from operating activities (EBIT) rose by EUR 15.3m year-on-year to EUR 4.8m.

Financial results and result before income tax

Including financial results of EUR –22.4m, the result before income tax equalled EUR –17.6m in 2015/16. That represents an improvement of EUR 11.1m, or 38.7%, over the previous year.


Investments in this segment were EUR 20.6m, or 37.9%, lower at EUR 33.8m in 2015/16 and were directed almost entirely to equipment for the generation of electricity from renewable energy. The decline below the prior year level resulted from the scheduled progress on individual projects. The Paasdorf-Lanzendorf windpark, which has a capacity of roughly 19 MW, was commissioned during the reporting year, giving EVN a total of 16 windparks with a combined generation capacity of approximately 268 MW.


Because of the continuing low or negative spreads, EVN’s thermal generation capacity will continue to be used primarily to supply balancing energy and for the management of shortages. The results from renewable capacity are dependent on electricity prices and, above all, from wind and water flows. The first full year of operations at the Paasdorf-Lanzendorf windpark should provide a positive effect in 2016/17. In total, an improvement in earnings is expected in 2016/17 due to the absence of valuation effects from the previous year. However, the framework conditions in the energy sector can have a significant influence on the development of revenue and earnings in this segment.



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