The energy industry is undergoing a change. The traditional business model of most energy suppliers has been severely affected by the tightened market conditions, changes in the regulatory framework and the technological progress. The transformation of the sector is observable in various financial aspects and in particular in the increased transaction activities.
Energy supply is becoming increasingly decentralized and complex. Energy supply companies are meeting these challenges by driving innovation through digitization. The primary aim of digitization efforts is to establish fast, efficient, and automated processes. The energy sector is intensively addressing the topics of Internet of Things, breaking down industry boundaries and increasing innovation through cultural change. An example of this is the founding of Evolution AG by 6 utility companies.
The investment priorities of energy supply companies and the targeted decarbonization lead to a concentrated demand for renewable energy projects. This situation is intensified by the lively investment activities of financial investors. Due to the limited investment opportunities and the small number of attractive projects, domestic prices are rising sharply. Accordingly, a large amount of funds continues to flow into investment projects abroad.
With the amendment of the Electricity Supply Act, the Federal Council wants to open the electricity market for all customers and, by revising the Energy Act, further improve the investment incentives for renewable energies and secure the supply of electricity. The federal government is currently developing a long-term climate strategy to achieve the climate target for 2050 (net emission reduction to zero), which should also consider the role of negative emission technologies. The gas sector is to receive legal regulation in the Gas Supply Act, which provides for partial market opening.
In June 2020, the three majority shareholders Schweizerische Kraftwerkbeteiligungs-AG, EOS Holding SA and the consortium of Swiss minority shareholders achieved a 90.41% stake in Alpiq Holding AG. Thus, the conditions for a squeeze-out merger were fulfilled and the merger was successfully completed after approval by the Annual General Meeting. Two shareholders have each filed compensation review proceedings against the squeeze-out merger.
Confirming the trend towards innovation and digitization, in October 2020 BKW acquired Sigren Engineering AG, based in Winterthur. Sigren Engineering is a leading actor in the growth areas of smart buildings and smart infrastructure. Through the acquisition, BKW Building Solutions strengthens its expertise in the automation of buildings and infrastructure.
In August 2020, ewz took over the Stigafjellet wind farm built in Norway by the Swedish energy company Eolus Vind. With a total capacity of 30 megawatts, the wind farm achieves an annual production of 117 GWh of electricity, enabling ewz to increase its production from wind power by 20%.
IFBC supported the company as a financial advisor during the entire financing process, including the development of the financing concept, the negotiations with potential investors and finally the successful closing of the credit facilities and the bond issuance.
As a private group of companies with over 125 years of tradition, WWZ reliably supplies the population and economy in the canton of Zug and surrounding regions with energy, telecommunications, water and e-mobility.
IFBC was mandated by Groupe E to perform a valuation of EW Goms to assess the financial conditions of the planned capital increase. The valuation was performed by applying the sum-of-the-parts approach.
Groupe E is a leading Swiss energy company that offers a wide range of energy products and services in different areas together with the companies in the group.
IFBC was engaged by EnAlpin AG to review the methodological correctness of the profitability tool for assessing investments in the solar and heat contracting business and the assumed cost of capital.
EnAlpin AG, headquartered in Visp, is company with its own power plants and participations. The company is part of the Energiedienst Group (Energiedienst Holding AG) and covers the Swiss market with a focus on the canton of Valais.
IFBC was mandated by Primeo Energie to analyse the financing of its segments and to develop recommendations for the appropriate financing ratios.
Primeo Energie develops energy solutions for private and business clients, utilities, cities, and municipalities. The Group operates along the entire value chain, from production and trading to distribution and sales.