Stadtwerke Gießen has successfully developed from a pure energy supplier to a service provider for energy and quality of life in the region. The company will continue along this path in the future.
During the annual press conference on 27 June, those responsible at SWG took a look ahead and presented current successes and the milestones for 2016.
Energy transition and digitalisation - two major challenges that companies such as Stadtwerke Gießen (SWG) are currently facing. Both issues require energy companies to be highly innovative and at the same time offer enormous opportunities. After all, both the energy transition and digitalisation are about helping to shape the future. At the annual press conference on 27 June in the main building of Stadtwerke Gießen, the Chairwoman of the Supervisory Board Astrid Eibelshäuser and the two Management Board members Matthias Funk and Jens Schmidt presented where SWG stands on the way to achieving this.
Despite the huge upheavals on the energy market, the company once again presented positive figures for the 2016 financial year. Although the net profit for the year fell compared to 2015, the final result was once again a significant plus of 4.635 million euros. Stadtwerke Gießen is distributing 2.5 million euros of this to the city of Gießen - the owner of SWG.
Stable energy sales
SWG's sales of heating, cooling and steam increased again in 2016 - to 456 gigawatt hours (GWh). Turnover in this segment climbed to around 37 million euros.
Compared to the record year of 2015, electricity sales fell only slightly to 1,694 GWh, while turnover fell to 265 million euros.
SWG also recorded a slight decline in gas sales to 1,300 GWh with turnover of 57 million euros.
Alignment for the future
With its strategy of recent years, SWG is already ideally positioned for the changed environment on the energy market. "In the medium and long term, one of the aims is to advance modern services relating to energy, leisure and mobility. Innovative ideas and digitalisation play a decisive role here," emphasised Jens Schmidt, Commercial Director of SWG. Matthias Funk, Technical Director of SWG, added: "As an energy company with strong roots in the region, we already have numerous strengths that we need for the tasks ahead." Both Management Board members agree that the stable foundation in the company's own business and its current orientation form the basis for a successful path into the future as a broad-based service company.
This foundation includes, among other things, the steadily growing share of electricity that Stadtwerke Gießen produces in the region in a climate-friendly manner. A milestone in this respect: the second thermal residue treatment and energy utilisation plant (TREA 2). It is due to go into full operation in 2017, and the two combined heat and power (CHP) plants have been running since December 2016. When completed, TREA 2 will cover the heating requirements of up to 4,200 single-family homes and the electricity requirements of around 13,500 average households and reduceCO2 emissions by around 28,000 tonnes per year compared to conventional energy generation. What's more, the fuel - processed waste - comes from the region. Matthias Funk summarises another key advantage: "The entire system is extremely variable. We can use it to react flexibly to the respective electricity demand or the current market situation and thus generate electrical energy particularly economically."
Collaborations and innovative ideas
Astrid Eibelshäuser emphasised SWG's collaboration with stakeholders such as the Technical University of Central Hesse (THM) at the annual press conference: "In numerous collaborations, the two have demonstrated the potential of such partnerships."
One of the projects focusses on the question of possible electricity storage technologies. THM and SWG are working on a lignin redox battery. This is based on organic compounds - the lignins found in almost all plants on earth. Lignins have the property of being able to store electricity in dissolved form. "We are not waiting for others to come up with a functioning system, but are taking on the pioneering role ourselves. If you want to survive in the long term, you have to take a bold step forward," emphasised Jens Schmidt. This statement also applies to the test plant, which is designed to bindCO2 and heavy metals in the ash from the two TREAs. Carbonation is the name of the process that takes place particularly quickly in the test plant. Another pilot project proves this: Even sewage sludge can be used as fuel in the TREA. In dried form, it has an energy content similar to lignite, but does not release any additionalCO2. In addition, the phosphates contained in the sewage sludge could be recovered from the incineration residues and used for fertiliser production. "Possibly a future business model," announced Matthias Funk.
Stadtwerke Gießen is also working on entering new areas in a number of other fields - for example in the form of GründerWerkStadt. Jens Schmidt summarised the idea behind this at the annual press conference: "We help creative people to establish innovative companies on the market. In doing so, we create added value for all sides and strengthen the entrepreneurial spirit and innovative power in the region." The start-ups to date include young companies working on service applications for smartphones, digitalised data collection for maintenance work or new technologies for passenger counting in local public transport.
Even though SWG's day-to-day business is currently focussed on energy issues, as a service provider, numerous other tasks will be added in the future. In this context, Matthias Funk emphasised the value of GründerWerkStadt: "Many a solution may be born from the creative minds here with us. We offer the space to promote exactly that."
Mobile and digital into the future
GründerWerkStadt and the cooperation with THM demonstrate the strategy on the basis of which SWG tackles challenges. The company's focus also includes advancing Giessen and the region in terms of digital infrastructure - for example through the freely accessible Wi-Fi in Giessen city centre, at the Ringallee swimming centre, at the two outdoor swimming pools in Kleinlinden and Lützellinden and in several municipalities in the district of Giessen. Jens Schmidt comments: "Today, people communicate digitally with each other everywhere - the smartphone is part of everyday life. With public Wi-Fi, we offer everyone fast and free access to the Internet. We have made a conscious decision to continue developing in this increasingly important area."
This also applies to the service that SWG offers its customers on the Internet. The company recently completely revamped its website. A new design and a completely revised structure increase user-friendliness - whether at home in front of the big screen or on the go on a smartphone. "We stand for personal service on site and can help with questions at any time in the customer centre. However, an innovative service company is only characterised by the fact that it also offers an equally good service online," emphasised Matthias Funk.
A lot has also happened in the area of electromobility over the past few years. In addition to the charging stations in the visitor car park in Lahnstraße and in the car park in front of the Ringallee bathing centre, SWG has been offering a special electricity product called "DrivE" since 2016. "We want to make it more attractive for customers to switch to e-mobility," explained Jens Schmidt. Anyone who opts for "DrivE" will receive exclusively Giessen green electricity from SWG at a favourable price - including a price guarantee of 24 months. At the same time, everyone secures the purchase benefits for a modern electric scooter from unu and receives electricity for the equivalent of 10,000 kilometres of driving fun after the purchase.
Thinking outside the box and developing further
New services and new business areas - all of this requires employees to develop further. "Even if it sounds like a cliché, our most important resource is the people who work for us," emphasised Matthias Funk. Jens Schmidt continued: "We not only claim this, but we also live by this premise."
The continuous training of skilled workers is therefore one of the cornerstones of SWG's corporate philosophy. Moreover, lateral thinking is not only permitted, but expressly encouraged. To this end, Stadtwerke Gießen has even introduced the so-called lateral thinking workshop. "Our aim is to break down existing patterns of thought and get creative in order to develop new products," explained Jens Schmidt. SWG employees have already contributed countless ideas during the previous workshops. Some of these are currently in the internal test phase.
Matthias Funk pointed out: "We are thinking ahead together and working on the right solutions to help our customers. It is not uncommon for a customised concept to be required - for example, for the energy services that we offer under the name En5." Today, more than 100 business customers benefit from SWG's experience in the field of energy efficiency and combined heat and power generation. In 2016, the company once again implemented several major projects, including the complete modernisation of the energy supply at the St. Marien specialist clinic in Bad Soden-Salmünster and the construction of a local heating supply in the Am Breuerbergsweiher development area in Lich.
SWG also supports towns and municipalities in setting up a municipal energy management system and thus tapping into the existing savings potential. "If you want to reduce your electricity and heating requirements, you need to know about your consumption and take a close look at your building stock. Permanent energy management helps with this," explained Matthias Funk. In the first three and a half years, SWG will accompany local authorities on this path and enable them to subsequently take on the task themselves. Jens Schmidt emphasised: "We are also making a contribution to climate protection in the region in this way. Our cooperation with the city of Giessen is already showing that both pollutant emissions and energy costs can be drastically reduced in some cases - sometimes by double-digit percentages."
Much more than energy
SWG also fulfils an important function and assumes responsibility in Giessen and the region beyond the topic of energy. "As a partner, we have always supported associations, institutions and public facilities - a commitment that emphasises our slogan 'With energy. For the region.' in a very special way," explained Jens Schmidt.
Astrid Eibelshäuser added: "SWG also makes an important contribution to the city of Giessen and the surrounding area by operating local public transport and swimming pools." The company also invested in these areas in 2016 and during the first few months of 2017 in order to further improve services and promote climate protection locally.
Among other things, four new natural gas articulated buses will replace outdated vehicles from the fleet in 2017. Like the natural gas vehicles already in use, they run on bio natural gas, which reducesCO2 emissions by around 81 per cent compared to modern diesel buses. Passenger comfort is also increasing: all buses will have full air conditioning before the end of this year. A few months ago, a test run for an innovative ticketing system of the future showed what form digital equipment could take in the future. During the project, three bus routes were equipped with freely accessible Wi-Fi. "When we are convinced of something, we try it out. That's the only way to find out whether an idea works in the end," explained Matthias Funk.
SWG is also pursuing this approach with a new offer at the Ringallee swimming centre. A modern fitness studio is to be built by October 2017. "People from Giessen and the surrounding area can look forward to a very special training experience. We are combining fitness and swimming under one roof," said Jens Schmidt, summarising the plans. The company has brought an expert in this field on board as a partner. Actic Fitness, which owns around 150 sports facilities in Sweden, Norway and Finland as well as 21 studios in German-speaking countries, will build and operate the new fitness centre.
Conversion of the gas network and smart meter
In the coming years, SWG will have to face two further challenges - which will also have a direct impact on some of its customers. The switch from L-gas to H-gas is currently pending. The background to this is that the Netherlands is continuing to reduce its natural gas production. The L-gas volumes that are being lost must be replaced by higher-quality H-gas from the Middle East or Russia. Small adjustments are therefore necessary at some plants. The company is currently examining how many devices this will affect in the network area of SWG subsidiary MIT.N. The actual conversion is scheduled for 2019 and 2020, and the first surveys of the inventory are currently underway in several municipalities. Jens Schmidt explained: "We will inform customers about the upcoming work in good time. When it comes to the switchover later, minor work will probably be sufficient in many cases. The majority of households are not affected at all."
The same currently applies to the conversion of electricity meters - the upcoming smart meter rollout. Over the next two decades, grid operators are to replace conventional Ferraris electricity meters with digital meters everywhere. "Smart meters will become a building block of the smart grid in every building. To this end, the German government has amended the Metering Point Operation Act accordingly. It regulates where the digital meters must be installed and when," said Jens Schmidt, describing the background to the upgrade.
Large consumers are initially obliged to do so, with private households following at a later date. "With the help of a smart metering system, energy can be used particularly efficiently. Devices in the house can be controlled, creating a smart home," explained Matthias Funk.
One example of this: refrigerators then recognise which food is running low and automatically place an order. The SWG board members made it clear that this is still a dream of the future. However, with the smart meter rollout, Stadtwerke Gießen is creating the infrastructure for future new products today - first the technical basis and then the application. Jens Schmidt compared this to another development: "Smartphones began their triumphal march around ten years ago. The multitude of associated apps only came afterwards. "
27.06.2017