Energy segment

Generation

Energie AG’s generation unit is responsible for developing, building, operating and maintaining power and heat generation facilities and heat distribution systems. The aim of the generation business unit is to ensure sound management of a top-quality portfolio of power and heat generation facilities. As part of this mission, the unit takes environmental and economic aspects into account.

Energie AG is committed to using renewable energy sources in an environmentally friendly manner. In addition, building and operating hydropower plants and thermal power plants, including with the use of biomass fuels. The Group is taking an active approach to expanding our wind power facilities and photovoltaic plants, and, in addition, supports research into alternative electricity generation.

In the 2018/2019 fiscal year, 70.8% of Energie AG’s proprietary electricity procurement came from renewable sources (previous year: 78.1%), with around 93.2% of this coming from hydroelectric power (previous year: 92.6%) and the remainder from photovoltaic systems, wind energy, biomass and biogenic waste.

Energie AG operates 43 of its own hydropower plants with a total capacity of around 280 MW and around 1,150 GWh of standard production capacity (previous year: 1,160 GWh). In addition, the Group holds procurement rights to hydropower plants with a capacity of around 380 MW and around 1,390 GWh of standard production capacity. The Kohlwehr power plant on the River Traun was closed in the 2018/2019 fiscal year, as the storage reservoirs of the two power plants were merged during reconstruction of the Danzermühle power plant, which is not owned by Energie AG.

Energie AG has seven locations ¹⁾Riedersbach, Timelkam, Wels, Redlham, Kirchdorf, Steyr, Laakirchen for thermal power plants with an output of 400 MW_e and up to 2,260 GWh ²⁾Including Timelkam CCGT plant (70%) and Riedersbach (location only) of electricity generated annually. The total installed capacity for heat production is around 1,024 MW_t. In addition, we operate 11 district heating distribution networks and manage around 600 heating systems under service contracts on behalf of customers. A large share of the district heating is generated from highly efficient cogeneration plants and biomass power plants. As well as promoting the use of geothermal energy, also the use of industrial waste heat is increasing in importance.

Energie AG also holds an interest in 13 wind power facilities with an output of around 15 MW and standard production capacity of 36 GWh. The Group operates photovoltaic plants with an output of around 10 MW.

Energie AG runs the highest-capacity power plant in Upper Austria, the Timelkam combined-cycle gas turbine (CCGT) power plant (output: 405 MW_e ³⁾CCGT Timelkam 100%). This CCGT power plant has the necessary flexibility and a highly efficient part load operation, enabling it to be used to stabilise the electricity grid for congestion management. As renewable energy proliferates, flexible power plant capacity is increasingly important. The Timelkam plant is particularly important to the control area manager when it comes to supply reliability, and a three-year-long contract was concluded on 1 October 2018.

The last of the coal was burnt up at the Riedersbach power plant in 2016. Since then, only natural gas and biomass has been used to generate electricity and district heating at our Riedersbach and Timelkam sites. The biomass power plant at Timelkam (capacity: 9.5 MW_e, 28 MW_t) uses forest and herbaceous biomass to generate green electricity and district heating.

For more information about energy generation, see the Key Performance Indicators section of the Management Report.

Fish ladders have been built at Energie AG’s run-of-river power plants and pumped storage power plants in accordance with the Water Framework Directive. As well as the fish ladder built at the Partenstein pumped storage power plant last fiscal year, fishways were also added at the largest power plants on the River Traun (Marchtrenk and Pucking) during the 2018/2019 fiscal year.

With over 20 licenced fisheries in Upper Austria and Salzburg, Energie AG is one of the largest fisheries managers in Upper Austria. The licenced fisheries next to the hydropower plants are also sustainably managed. As well as supporting natural reproduction of fish, Energie AG also ensures an attractive and naturally authentic population density by means of ecological breeding programmes and regular stocking with native fish species.

The preservation of valuable habitats, biodiversity and water body morphology are essential aspects of project development at Energie AG. A wide array of environmental considerations are addressed during the approval process for power plant construction. In addition, the Group undertakes extensive communication efforts so that local residents and other interested parties are involved in the process from its early stages. In terms of hydroelectric power in Upper Austria, a very high degree of full-capacity utilisation (over 90%) was achieved in an environmentally friendly manner with good agreement from the relevant interested parties.

Measures to improve ecological conditions and reduce environmental impacts (such as fish ladders) require investment and decrease revenue within the energy industry as a result of production and output losses. This threatens the commercial viability of small and medium-sized power plants, although this risk has largely been overcome to date with the help of subsidy programmes. The Renewable Energies Expansion Act (Erneuerbaren-Ausbau-Gesetz), which is currently being prepared in Austria, is an important element when it comes to future hydroelectric expansion, with the feasibility of further projects depending on its content.

All thermal power and heat generation plants of Energie AG exhibit a very high degree of fuel utilisation and, in turn, efficient use of primary energy resources.

Conserving resources is more than simply a focus area in the operation of power and heat production plants; it begins as soon as infrastructure facilities are built and spans their entire useful life. The environmental impact of new production and supply facilities is kept as low as possible with the close involvement of affected stakeholders and the support of outside experts. A forward-thinking maintenance strategy ensures high system availability and maximises system lifespans.

Increasing energy efficiency in electricity and heat production, distribution grids, and customers’ energy and water consumption is a permanent focus of efforts to achieve sustainability.

The Group ensures that thermal power plants and heat generation processes remain environmentally friendly by using state-of-the-art practices, which are regularly reviewed both internally and externally. The use of cogeneration (combined electricity and heat generation) plays an important role in improving efficiency. The heat is used for industrial process heating or district heating for the industrial sector, commercial applications and household customers. Efficiency gains are also realised via environmental and other audits, maintenance and repairs, and internal improvement processes as part of our ongoing management efforts. The Group is continuing to expand the use of heat. In 2019, contracts to increase heat sales volume were concluded for the Cogeneration-Kraftwerke Management Oberösterreich GmbH location. A district heating network is currently being constructed in Gmunden. The aim is for the waste heat from an established industrial cement company to be used to supply district heating to the region. In addition, Energie AG and the Austrian Institute of Technology (AIT) are involved in a research project along with other project partners to review a high-temperature recovery system for using waste heat from the Gmunden cement works. At the Kirchdorf plant, crucial steps are being taken to develop process automation and remote monitoring.

We also regularly receive expert opinions to verify that our larger facilities are operating with high efficiency.

In terms of ensuring supply reliability, Energie AG’s fleet of thermal power stations is playing an important role in the transition to clean and renewable energy, a development which is changing the image of the facilities. The first reason for this is that decarbonising fuel is a long-term goal for our society. This can be achieved through increased use of biomass and “greening the gas” (blending natural gas with renewable gas, such as using methanation or hydrogen produced from renewables). Energie AG’s fleet of power plants and district heating generation facilities are supporting this development. Secondly, the fleet produces a reliable supply of electrical power and flexibility, providing balancing energy in more ways than one. Although electricity generation has been the main focus to date, there is an increasing move towards ensuring power availability for short-term usage in the event of weak winds, low water flow and dark conditions, as well as services at the request of grid operators to prevent undesired load flows and grid shortages.

Sales

For years, Energie AG has been supplying its customers with environmentally friendly hydroelectric power. Wind energy and biomass also account for a significant proportion of the total amount of electricity generated. The only fossil fuel used to generate energy is natural gas, which represents just under 10% of our output. Energie AG’s private and commercial customers are supplied with the hydroelectric power product mix. In addition, the company engages in promotional funding and campaigns to encourage efficient and sustainable energy use.

The graphics below show the energy mix and a detailed breakdown for the hydroelectric power product label based on the 2017/2018 fiscal year. ⁴⁾Fuel mix disclosure figures as defined by the Austrian Electricity Industry Organisation Act (Elektrizitätswirtschafts- und -organisationsgesetz; ElWOG), § 78 onwards, were not yet available for the 2018/2019 fiscal year at the time this report was written.

Supplier mix

“Hydroelectric power“ product label

Subsidised electricity products were available in addition to direct support (e.g. for replacing obsolete household appliances with new, highly energy-efficient ones, or for heat pumps, electric vehicles and photovoltaic systems). ENAMO Ökostrom GmbH, which was a joint venture between Energie AG and LINZ AG für Energie, Telekommunikation, Verkehr und kommunale Dienste until 31 March 2019, has 100% renewable seller status. In addition to supplying all private and commercial customers with environmentally friendly electricity from hydroelectric power, ENAMO Ökostrom GmbH is one of nine electricity distribution companies that also offers ”green electricity“ certified according to the UZ46 environmental label throughout Austria.

When it comes to energy efficiency, Energie AG has been supporting its customers for a number of years by providing energy-efficient products. In recent years, these products (such as energy-saving LED light bulbs) have been given to customers free of charge or sold at a special, reduced price at and around the Energy Saving Expo (Energiesparmesse) and as part of the Energie AG Regional Tour.

The household appliance replacement campaign, Kaufe oder miete (“Buy or Rent”), was wrapped up at the end of December 2018 and led to more than 70,000 inefficient home appliances being replaced and around 16 GWh being saved since 2006. By the end of the fiscal year, work had already begun on designing a new campaign to follow on from this initiative.

Accelerating energy-efficient technologies has now been an Energie AG priority area for many years. The installation of efficient heat pumps is supported through monetary assistance, energy advisory services and demonstration systems. It was possible to install 510 new systems in the Energie AG service area over the past fiscal year (previous year: 500), yielding total energy savings of around 8.4 GWh (previous year: 8.3 GWh).

In gas sales, the “Energy-Saving Package”, which supports the installation, renewal and conversion of heating systems to condensing boiler technology for household customers, was successfully continued. In the period under review, around 270 heaters were converted to natural gas or replaced (previous year: 370), saving around 3.5 GWh of energy (previous year: 4.8 GWh, calculated based on EEffG). Contracting solutions for efficient heating systems were another focus area. The increased use of biomass, geothermal energy and industrial waste heat is particularly effective in promoting regional and renewable energies in the production of heat.

The implementation of customer projects, especially in the shape of photovoltaic systems, is becoming increasingly important as well. Energie AG has extensive expertise and experience in this field, which is intended to be put to greater use.

Energie AG’s contracting solutions allow business customers to focus on their core business while still benefiting from eco-friendly electricity generation harnessing the power of the sun. 38 photovoltaic systems with around 5.9 MWp have been installed since 2013. A total of 4.4 GWh of electricity was generated in the 2018/2019 fiscal year from all systems installed by Energie AG on the roofs of Upper Austrian businesses.

¹⁾ Riedersbach, Timelkam, Wels, Redlham, Kirchdorf, Steyr, Laakirchen

²⁾ Including Timelkam CCGT plant (70%) and Riedersbach (location only)

³⁾ Timelkam CCGT plant (100%)

⁴⁾ Fuel mix disclosure figures as defined by the Austrian Electricity Industry Organisation Act (Elektrizitätswirtschafts- und -organisationsgesetz; ElWOG), § 78 onwards, were not yet available for the 2018/2019 fiscal year at the time this report was written.