JARAA'IDJARAA'ID
Notification Show More
Latest News
Germany leads push to delay electric vehicle tariffs between EU and UK
Business
Rugby World Cup 2023: Who has qualified for the quarter-finals? How do things stand in each pool?
Sports
The Republican case against Biden takes a body blow … from Fox News
United States
EU and China may ‘drift apart’ due to political tensions and economic disputes, warns Dombrovskis
Europe
Amazon/AI: tech arms race continues with Anthropic investment
Business
Aa
  • Home
  • Local News
  • Africa
  • United States
  • Europe
  • Asia
  • Sports
  • Videos
  • Live Score
  • More
    • Business
    • Market Data
      • Stocks
      • Commodities
      • Cryptocurrency
      • Forex
    • Weather
Reading: Germany’s Eon warns of another ‘crisis’ year for energy sector
Share
Aa
JARAA'IDJARAA'ID
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Business
  • Sports
  • Videos
Search
  • Home
  • Local News
  • Videos
  • World
    • Africa
    • United States
    • Europe
    • Asia
  • Market Data
    • Stocks
    • Commodities
    • Cryptocurrency
    • Forex
  • More
    • Sports
    • Business
    • Weather
    • Live Score
Have an existing account? Sign In
Follow US
JARAA'ID > Business > Germany’s Eon warns of another ‘crisis’ year for energy sector
Business

Germany’s Eon warns of another ‘crisis’ year for energy sector

News Room
Last updated: 2023/03/15 at 8:17 AM
News Room Published March 15, 2023
Share
SHARE

German energy giant Eon has warned the year ahead will remain a period of “crisis” for the energy sector, despite posting better than expected results for 2022.

Leonhard Birnbaum, the chief executive of one of Europe’s largest energy suppliers, cautioned against being “lulled into a false sense of security” one year on from Russia’s invasion of Ukraine, which caused soaring global energy prices and fears of blackouts.

Birnbaum said that, while the continent had survived the winter and wholesale gas prices had fallen, this “isn’t yet a reason to sound the all-clear”.

He added: “Prices are still at levels we would’ve considered unthinkable just a few years ago. Moreover, prices remain volatile. Nobody knows how prices will develop in the weeks and months ahead.”

Eon, which buys its energy on the wholesale market and did not have direct contracts with Russian providers, reported that its adjusted earnings before interest, tax, depreciation and amortisation rose to €8.1bn in the 2022 financial year — better than the company’s own forecast of €7.6bn to €7.8bn, and €170mn higher than the previous year.

It said the main drivers of the better than expected results were the relatively mild weather, a “significant reduction” in customer
churn in the aftermath of the Ukraine crisis, as well as savings made through synergies.

Analysts said that, for a company that was vulnerable to global energy price fluctuations, Eon was lucky to avoid a cold winter that could have forced it to buy large volumes of gas at high prices.

Birnbaum said that Eon, which has about 51mn customers across Europe, would expand its investments to €33bn in the period to 2027 as part of its efforts to play a role in “advancing and shaping an accelerated energy transition in Europe”.

But he delivered a warning to policymakers in Germany, which has ambitious targets to dramatically expand renewable energy production and make the country carbon neutral by 2045, that they must “finally get serious” about clearing obstacles to the transition.

He called on officials to take meaningful steps aimed at “reducing bureaucracy and ending the country’s parochial approach to planning” so that companies such as Eon could succeed in their efforts to overhaul the country’s energy grid.

About 15 per cent of renewable energy supplies in Europe — and two-
thirds in Germany — are connected to networks operated by Eon.

The company said that to meet renewable energy targets in Germany it would have to double its existing 800,000km of distribution networks in the country by 2030 — a challenge described by Birnbaum as “enormous”.

Eon also said earnings from its nuclear power plant would be invested in projects related to the energy transition. The company runs one of Germany’s three remaining nuclear sites.

The life of the Isar 2 plant, near Munich, was extended as a result of the Ukraine crisis as Berlin sought to dramatically reduce its dependence on Russian gas.

But it will go offline in April as part of the country’s longstanding phaseout of nuclear power production that was announced in response to the 2011 Fukushima disaster in Japan.

Read the full article here

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room March 15, 2023
Share this Article
Facebook Twitter Email Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News

Germany leads push to delay electric vehicle tariffs between EU and UK

News Room News Room September 25, 2023
Rugby World Cup 2023: Who has qualified for the quarter-finals? How do things stand in each pool?
The Republican case against Biden takes a body blow … from Fox News
EU and China may ‘drift apart’ due to political tensions and economic disputes, warns Dombrovskis
Amazon/AI: tech arms race continues with Anthropic investment
British Open snooker 2023 LIVE – Mark Selby and Shaun Murphy in action after Judd Trump and Allen win, Luca Brecel out
Trump appears to remain worried that 2024 won’t be rigged to his benefit
EU countries agree on watered-down car emissions proposal
- Advertisement -
Ad imageAd image

You Might also Like

Germany leads push to delay electric vehicle tariffs between EU and UK

September 25, 2023

Amazon/AI: tech arms race continues with Anthropic investment

September 25, 2023

Covid antiviral drug linked to ‘transmissible’ mutations, research finds

September 25, 2023

Russia pounds port of Odesa in latest air strikes against Ukraine

September 25, 2023
  • Somalia
  • Africa
  • United States
  • Europe
  • Asia
  • Cryptocurrency
  • Forex
  • Stock Market

About US

Jaraa'id is your one-stop website for the latest global and local news and updates, follow us now to get the news that matters to you.
Quick Link
  • Privacy Policy
  • Terms of use
  • Press ReleaseSubmit
  • Advertise
  • Contact
Top Sections
  • Business
  • Sports
  • Videos
  • Market DataLive
  • Weather

Subscribe US

Subscribe to our newsletter to get our Latest articles instantly!

I have read and agree to the terms & conditions

2023 © Jaraa'id. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?