Risks and opportunities

The energy industry was strongly influenced by geopolitical, political and regulatory developments during the 2023/2024 reporting period. The EU stepped up measures to stabilise energy prices and reduce dependence on fossil fuels. The expansion of electricity generated from renewable sources continued to proceed at high speed in the reporting period. The major volatility drivers were the developments in political crisis regions, in particular Russia’s war of aggression against Ukraine, the conflict zones in the Middle East, and general economic development.

At the beginning of the 2023/2024 fiscal year, there was a significant increase in forward market prices for electricity, followed by a prolonged downward trend which transitioned into a volatile sideways movement. Spot market prices also dropped significantly compared to the previous year, accompanied by pronounced price fluctuations. The market price for natural gas followed a similar pattern. All told, these developments led to a reduction in the risk position at Energie AG in the course of the fiscal year.

Despite these volatile developments and geopolitical uncertainties, Energie AG did not identify any risks in the 2023/2024 fiscal year possessing the potential to jeopardise the continued existence of the Company.

In the 2023/2024 fiscal year, Energie AG once again demonstrated its ability to successfully respond to the challenges of what is still a volatile energy sector. Risks and opportunities management again proved to be a central factor for risk mitigation and leveraging opportunities. In particular, adapting to geopolitical events and regulatory changes made an important contribution towards financial stability. Despite continuing uncertainties on the energy markets and in the political landscape, Energie AG was able to further consolidate its market position and is robustly positioned with a view to successfully overcoming future challenges.

For more details on the risks and opportunities situation, see the Notes to the Consolidated Financial Statements, section 33, Management of risks and opportunities.