Solutions 2030: CEO Robert Itschner on BKW's strategy

Why does BKW need a new strategy?

BKW’s previous strategy only extends to 2026. So it is time to look a little further into the future. In addition, markets and the needs of customers have changed massively in recent years. We are now responding to this.

What is at the heart of the new strategy?

The name “Solutions 2030” says it all: we want to offer our customers solutions that will equip them for the challenges of the energy transition.

Has BKW not already been doing this?

Yes. However, we want to focus even more strongly on sustainability. With “Solutions 2030”, BKW is pursuing ambitious sustainability goals in the areas of climate, energy, nature and people. This means, for example, that we are reducing our emissions, consistently continuing the expansion of renewable energies, offering tailored solutions for our customers and increasing energy efficiency in infrastructure and buildings. The focus of our new strategy is therefore on growth, excellence and sustainability.

Why is this interesting for BKW’s investors?

Firstly, BKW operates in markets that offer attractive growth opportunities. Secondly, BKW has an excellent track record. And thirdly, investors are also being encouraged to invest more sustainably. And we can offer that with our sustainability goals.

Those who invest in BKW as shareholders are contributing to the renewable energy future?

Exactly. And this also makes BKW attractive, for example, to green investment funds that only invest in companies with a sustainable business model.

Did investors put pressure on BKW to become more sustainable faster?

The pressure for greater sustainability is increasing from all sides: from investors, from capital providers, from regulators. But also from our customers. And from our employees. They all want a sustainable BKW – and so do I. This is a major opportunity for us to continue growing and remain attractive. BKW can not only offer more sustainable solutions that are actually in demand on the market, but also act as a sustainable company.

What are the specific sustainability goals that BKW has set itself with the new strategy?

In the social sphere, our employees are particularly important. Here, we continue to invest in occupational safety and health protection. And we are stepping up our efforts in areas such as diversity and inclusion, as well as skills, leadership and talent development. In addition, by 2030 BKW will halve the CO2 intensity of its business activities in Scope 1 and 2 compared with 2022. We aim to achieve net zero in this area by 2040.

There is quite a lot to do – after all, BKW still has a stake in a coal-fired power plant in Germany.

That’s true. To achieve our sustainability goals in the area of climate and energy, we are pursuing two paths: on the one hand, we want to continue to systematically expand renewable energy production. On the other hand, we said some time ago that we would exit coal. We now need to find a viable path here, as we only have a minority stake in the coal-fired power plant concerned and therefore need to coordinate with the other owners.

Alongside sustainability, growth is a second pillar of the new strategy. Where does BKW want to grow?

We want to grow strongly in the area of Energy Solutions: in this business area, we will selectively strengthen renewable energy production, particularly with wind and solar in Switzerland and abroad. And we want to start expanding hydropower in Switzerland – even if we will not be able to put a new dam into operation by 2030. This will be complemented by the expansion of flexibility through the installation of large batteries.

Is BKW also considering the construction of a new nuclear power plant?

This question does not arise at the moment. Firstly, the construction of new nuclear power plants is still prohibited in Switzerland. Secondly, there are so many unanswered questions with this technology that it is simply not an issue for our strategy through to 2030. With «Solutions 2030», we want to implement those projects that are actually feasible. And thereby generate the revenues we need for our further growth.

Where does BKW want to grow in the area of tailored solutions for customers with high electricity requirements?

Let me give you an example: a large bakery starts its ovens at two o'clock in the morning six times a week, and its electricity consumption remains very high until the morning. For the rest of the day, the company needs only little energy. We can offer this bakery electricity for its consumption profile in the desired quality, for example fully renewable. This is possible because we own a broad range of power plants that complement each other extremely well. We also know the markets very well.

Can other electricity companies not do that?

Yes, of course. However, we see that such supply contracts often have long terms. For customers, it is an advantage to have BKW as a partner that is financially very stable. This gives them the certainty that BKW can still supply the electricity even if there should be turbulence in the markets.

What are your growth plans for Power Grid?

In the area of Power Grid, we are growing within the scope of what is necessary in grid expansion for the energy transition. After all, the grid needs to become stronger in order to connect solar installations, heat pumps and charging stations.

And for Infrastructure & Buildings?

In this business area, we primarily want to grow organically: the need for energy efficiency is increasing rapidly. We see major opportunities for BKW here. We are already Switzerland's largest listed energy and infrastructure company. Investors can invest in the entire energy transition through BKW: from renewable energy production and trading, to electricity grids, through to the efficient use of energy in buildings and infrastructure. But the new strategy always applies the principle of profitability before growth. In other words, we only want to grow where we generate profits.

Alongside sustainability and growth, Excellence is the third pillar of the «Solutions 2030» strategy. What does this mean?

Under the term Excellence, we want to continuously improve our processes. It is important that, despite growth, we maintain our current financial stability and do not take on any unnecessary risks. Risk management is central to our business. In addition, we want to have a strong customer focus in all our activities. In some areas we are already very good at this; in others, we still have potential for improvement.

Where does BKW still have room for improvement in terms of customer focus?

In the Infrastructure & Buildings area, we are already very close to our customers – also geographically. In the regulated business, we still have potential when it comes to customer orientation – even though the scope for action is more limited here. We want to be a company that people like to come to and that offers its customers a great experience.

The new strategy runs until 2030. What kind of company will BKW be then?

By 2030, we want to be a company that makes a significant contribution to the energy transition. We need all the elements mentioned in order to implement our solutions in the market. That is why the strategy is also called «Solutions 2030»: we want to act as a doer and be successful with our customers.

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