Short- and medium-term implementation of the corporate strategy: consolidation and selective growth
EVN’s activities in the energy business are based on a proven integrated business model which covers generation, network operations and energy trading and sales (also see here). Against the backdrop of the current situation on the energy markets, EVN is working to consolidate the business activities in its core markets. The company has defined Austria, Bulgaria and Macedonia as its core markets – whereby the scope of the value chain is different in each country. Plans also call for optimising the timing of business activities in Croatia. Continuous efficiency improvements at all levels of the value chain are an important element of this concept. The focal point of EVN’s consolidation course is the protection of supply security, which is also given high priority on the materiality matrix. The continuous expansion and improvement of its energy networks allows EVN to meet these challenges, which are also influenced by regulatory requirements and the expansion of renewable generation capacity in the company’s network area.
The goal set by EVN for electricity production calls for a coverage ratio of 30%. This refers to the share of electricity sales which can be met with internal generation and/or is covered by electricity procurement rights. The current ratio equals 22.8% (previous year: 18.3%). The commissioning of the Prellenkirchen IV windpark and the Duisburg-Walsum coal-fired power plant in the reporting period made an important contribution to improving the coverage ratio. EVN’s strategy also includes an increase in the generation from renewable energy sources from the present level of 42.5% to 50%. In addition to the further expansion of windpower capacity in Lower Austria, regional projects in the areas of hydropower, biomass and photovoltaic will help to meet this goal. This focus on generation from renewable energies underscores EVN’s commitment to its economic and ecological responsibility and also helps to safeguard energy supplies.
- GRI indicator: Planned capacity in relation to expected demand (EU10)
In the environmental services business, EVN’s strategy is based on continuous growth in water supply services in Lower Austria and the sustainable operation of the thermal waste utilisation plant in Dürnrohr. International projects are realised on a selective basis and with coverage for political risks.
The consolidation measures implemented by EVN ensure steady, sustainable growth in the core markets. This supports the generation of continuous stable cash flows, which help to further optimise working capital. With this strategy, EVN protects the financing of its investments and safeguards stable dividends. The EVN Group’s investment activities are concentrated in Lower Austria. The priorities include maintaining high standards in the electricity and natural gas networks, the further expansion of energy generation from renewable sources and drinking water supplies.
- Details on the investment projects are provided in the section on operating highlights, see Operating Highlights 2013/14.
