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23.08.2013

Stadtwerke Gießen (SWG) recorded a significant increase in electricity, gas and heat sales in 2012 compared to the previous year - the basis for the Group's positive result. SWG also laid the foundations for the company's future success with new investments in 2012.

On 23 August, Stadtwerke Gießen (SWG) presented its positive annual result for 2012 at its annual press conference. The surplus at Stadtwerke Gießen totalled 5.8 million euros. The SWG Group generated a profit (after tax) of €7.6 million - around €2.3 million more than in 2011. The company distributed €2.5 million to its sole shareholder, the University City of Giessen.
In view of the positive result, Supervisory Board Chairwoman Astrid Eibelshäuser and the two SWG Management Board members Manfred Siekmann and Reinhard Paul expressed their satisfaction when they presented the figures last Friday.
"The longer periods of cold weather compared to 2011 played a role in the increase in gas and heat sales. However, this can only partially explain the growth," explained Manfred Siekmann. It was not only the volume sold that increased, but also the number of customers in the heating segment: by 63 for business customers and by 457 for private customers. SWG also continued its growth in electricity sales, which climbed from 1335 gigawatt hours (GWh) in 2011 to 1467 GWh in 2012. As in the previous year, several new major customers contributed to this growth. "Once again, we were able to win over a number of companies - including those outside the Mittelhessen Netz GmbH grid area - with our offer. They trust our experts when it comes to purchasing electricity," emphasised Reinhard Paul.

Own generation with CHP plants expanded
However, closely monitoring the market and purchasing at the right time is only part of SWG's strategy when it comes to procuring electrical energy. The company is increasingly meeting its demand with the help of plants in the city and the region. SWG generates around 40 per cent of the electricity it supplies to its private customers itself using combined heat and power (CHP). This makes Stadtwerke Gießen one of the pioneers in Germany. "The nuclear phase-out and energy turnaround did not mark the start of a new direction for us, but rather confirmed the course we have been on for a long time," emphasised Reinhard Paul. His fellow board member Manfred Siekmann emphasised: "Stadtwerke has been implementing the concept of decentralised generation, which is considered modern and sustainable today, since the early 1980s. That was when the first combined heat and power plant (CHP) went into operation and the number of CHP plants has since grown to around 100." In 2012, four CHP plants with an electrical output of two megawatts each were added in Lahnstrasse, Winchester Strasse, Versailler Strasse and Schlachthofstrasse. A key advantage of the plants is that they can be controlled as required and used flexibly, making them the ideal complement to larger CHP plants such as the biogas plant in Großen-Buseck.
SWG's CHP strategy is particularly successful because the company in Giessen has also steadily invested in expansion in another area - the district heating supply. "CHP is only efficient if the heat generated can be optimally utilised. We have created the conditions for this with a modern and widely ramified heating network," explained Reinhard Paul. In 2012, an exceptional project was on the investment list. SWG established a connection between the previously separate district heating networks in the northern and western parts of the city. The special feature: The approximately 250 metre long pipeline between Sudetenlandstraße in the east and Leimenkauter Weg in the west runs under the River Lahn. The district heating pipes, which are around 31 centimetres thick, were brought underground with the help of a flush borehole.

Partner to local authorities and companies
SWG also regularly contributes its CHP experience and expertise in heating networks to projects throughout the region. In 2012, for example, the company joined forces with local tradesmen to set up a local heating supply for more than 100 properties in the "Auf der Bölz" development area in Heuchelheim. "Local authorities are taking on a pioneering role in the energy transition and the example in Heuchelheim shows how they can successfully fulfil this role," said Manfred Siekmann. As with the district heating network in Giessen, the concept also works on a smaller scale.
This is not only demonstrated by Heuchelheim, but also by numerous other projects in the field of energy services. "The days of the pure supplier are long gone," Reinhard Paul noted. Innovative services in the field of energy efficiency and climate protection, such as our En5, are a natural part of an energy company's portfolio.
The figures show that SWG can also look back on a successful 2012 in this segment: En5 gained 25 new customers and increased heat sales from around 27 GWh to around 46 GWh. Among other things, bauverein AG converted around 700 flats in apartment blocks in Giessen to district heating. In Altenstadt, the energy service providers set up a heating network that is fed by a wood chip plant and supplies around 680 households and commercial facilities. "We also contribute our expertise to projects beyond the borders of the district of Giessen - with success," emphasised Manfred Siekmann.

Projects with a future

Reinhard Paul noted that the positive balance sheet is no reason to lean back - on the contrary. "This year, we are celebrating our 75th anniversary and can look back on a successful history as a company with regional roots. We want to celebrate with the people of Central Hesse, the municipalities, associations, institutions and companies, support them in their work and say 'thank you'. One of the ways we are doing this is through the 75 good deeds we are celebrating in 2013. These good deeds are a special expression of what has long been part of our identity: supporting stakeholders in Giessen and Central Hesse in their commitment to the people in the region with services and campaigns such as the 'Fire brigade of the future'," said the SWG Management Board member. "This support remains an integral part of our strategy. However, as the energy market has changed significantly over the past decades and we are currently in a phase of upheaval, we are also using the anniversary for another purpose. We are looking ahead and gearing ourselves up for the tasks ahead. It is important to us that the résumé at the next big anniversary is just as positive and that we have left our mark in line with our motto 'With Energy - For the Region'," emphasised Manfred Siekmann.
The recently agreed co-operation between SWG and the Technical University of Central Hesse demonstrates how SWG will approach challenges. The two partners have joined forces to jointly develop solutions for pressing energy industry issues. "The dovetailing of research and practice will become more important in the energy sector. In Giessen, we find ideal conditions for such co-operation," said Manfred Siekmann. The biogas plant in Großen-Buseck shows that this is already bearing fruit. "We worked together with THM to develop the plant - and in terms of its efficiency, it is one of the best in Germany."
Being equipped for the challenges of the future in the long term also played a decisive role in SWG's decision to cooperate in another area. At the end of May 2013, Stadtwerke Gießen and 22 other energy companies from Hesse and Lower Saxony joined forces to form the Stadtwerke Mitte consortium. Together, they want to acquire at least 25.1 per cent of E.ON Mitte shares. "We are pursuing one goal: to continue E.ON Mitte together with the partners in the consortium as a municipally owned and regionally anchored company and to play an active role in shaping the energy transition in the regions," explained Reinhard Paul.

Looking to the future
The municipal utilities have set themselves ambitious goals for the coming years. One of these is that SWG wants to produce half of Giessen's green electricity in its own CHP plants by 2020. Currently, the proportion is around 40 per cent, with the rest coming from certified hydropower plants. A new thermal residue treatment and energy utilisation plant (TREA) is set to make a major contribution to reaching the 50 per cent mark. "We have gained very good experience with TREA I over the past three years and have started planning TREA II, which will produce heat and electricity once completed," said Reinhard Paul. He also pointed out that the plant would not only produce energy locally, but that the fuel would also come from the region.
Stadtwerke Gießen intends to essentially maintain its successful orientation over the coming years. "We will continue with the tried and tested, but adapt it - wherever necessary - to the conditions on the energy market. For example, we have further developed the future strategy 'SWG 2020' for many areas on the basis of the 'SWG 2015' corporate strategy," explained Manfred Siekmann. In addition to increased in-house generation in combination with a modern heating network and new services, this also includes the expansion of the electricity and gas network as well as the further development of local transport and the company's own employees. "An interesting and exciting time awaits us, the city of Giessen and the region," predicted Reinhard Paul, and Manfred Siekmann promised: "With our expertise as an energy service provider, we want to contribute to supporting people, local authorities, institutions and companies as a partner in important issues for the future - to move the region forward on this path."