‘Despite the more difficult financing environment, we stand by our €6 ...

‘Despite the more difficult financing environment, we stand by our €63bn investment programme for 2007-2010,’ Wulf H Bernotat, CEO of Europe’s largest investor-owned energy company, E.ON, recently stated. He added: ‘Even if we choose to reassess the economic significance of each of our projects in the light of the current economic crisis, we are confident of delivering our ambitious investment programme which will make an important contribution towards stabilising the economy and creating jobs.’ In addition, Bernotat pointed out that in the current crisis, investments in the real economy have a particularly anti-recession effect. E.ON’s investment programme includes the construction of 20 new generating units, five of them in Germany. These investments will create 15,000 new jobs in Germany and 30,000 new jobs across Europe. Bernotat emphasised that climate-protection policy must not be derailed by the financial crisis. ‘Our challenge now is to find efficient ways of protecting the earth’s climate. Whether Germany remains competitive 10 or 20 years from now will depend, to a large degree, on whether it has an affordable, reliable, and climate-friendly supply of energy.’ He said that E.ON would stand by its decision to substantially increase renewables’ share of the company’s generation portfolio and to invest €6bn in renewables through to 2010 alone. He also said that a harmonisation of Europe’s renewable subsidy programmes would spur more dynamic growth of capacity in the European Union. Bernotat also reiterated the company’s support of the German federal government’s goals to enhance energy efficiency and expand combined heat and power generating capacity. However, he warned that Germany could face an electricity shortage if not enough fossil-fuel-fired generating units - particularly those using advanced, climate-friendly coal-fired technology - are built. He said: ‘Our new generating units help keep down power prices by increasing the amount of available generating capacity. This will help to enhance competition.’ E.ON believes that the success of the much-needed modernisation of Europe’s generation fleet depends, to a substantial degree, on the investment environment created by the EU Emissions Trading Scheme (EU ETS). Europe needs a lean ETS with uniform, EU-wide rules that apply to all generating facilities, Bernotat said. The auctioning of emission allowances in the energy industry should be introduced gradually, starting in 2013. If all allowances must be purchased by auction with no transition period, Bernotat warned that companies may rethink their plans to build new power plants. Bernotat also called for a renewed public debate in Germany about the continued operation of the country’s nuclear power stations, noting: ‘Particularly in the current crisis, nuclear power is a strategic option for German energy policy, one that will help avoid shortages in the German electricity market and the resulting price increases. In the past, nuclear power has made a key contribution to Germany’s competitiveness.’