Energy BKW announces investments in the billions ahead of Capital Market Day
The cornerstones of BKW's new "Solutions 2030" strategy have been defined. The energy and infrastructure service provider is not only planning to invest billions over the next six years, but is also setting itself new targets.
08.11.2024, 07:28
08.11.2024, 08:48
SDA
BKW is presenting its new "Solutions 2030" strategy on Friday (today) at the Capital Markets Day at Zurich Airport. It envisages investments of around CHF 4 billion for the further expansion of the business. The operating result (EBIT) is to increase to CHF 1 billion by 2030, as BKW announced on Friday morning.
BKW CEO Robert Itschner emphasized that all business areas will contribute to achieving the targets. Around half of the investments are to be made in Switzerland.
For the years 2025 to 2030, the Group anticipates an operating cash flow of over CHF 5 billion, which will be used to finance the investments. Chairman of the Board of Directors Roger Baillod emphasized the company's strong financial position, which is underpinned by a solid equity ratio and an A rating.
In addition to financial growth, BKW is increasingly focusing on sustainability. The company is aiming for climate neutrality by 2040 and wants to halve its CO2 intensity by 2030 compared to 2022. To achieve this goal, BKW intends to further expand the production of renewable energy and invest more in the preservation of ecosystems and the protection of biodiversity.
Targets by business area
The strategy is divided into three main business areas: Energy Solutions, Power Grid and Infrastructure & Buildings. These are intended to cover the entire value chain of the energy transition - from the production of renewable energy to its distribution and efficient use in buildings and infrastructure.
In the Energy Solutions segment, BKW plans in particular to expand standardized energy solutions and increase its own electricity production capacities with a focus on CO2-free electricity. The EBIT contribution of this segment is expected to grow to CHF 650 million by 2030.
In the Power Grid business segment, the focus is on further developing the distribution grid while maintaining a high level of availability. To this end, gradually higher investments are planned to support the transformation of the energy system. The EBIT contribution of this business segment is estimated at CHF 150 million.
Finally, in the Infrastructure & Buildings business segment, BKW is planning profitable growth by strengthening its general planning offering and expanding solutions in the areas of energy and mobility. The target here is an EBIT contribution of CHF 200 million.
