«Problems of economics and management of oil and gas complex»

Energy transition in Germany on the example of the financial results of the companies "E.ON" and "RWE"

UDC: 911.3:338.4(430)
DOI: 10.33285/1999-6942-2022-2(206)-65-70

Authors:

¹ Institute of Geograhgy of the RAS, Moscow, Russia
² Peoples' Friendship University of Russia (RUDN), Moscow, Russia

Keywords: energy, electric power industry, energy policy, liberalization, Germany, energy transition

Annotation:

The structure of electricity generation, the cost structure in the price of electricity for end consumers in Germany is changing. The authors of this article have shown that major changes are taking place in the territorial-organizational structure of Germany. They are called "energy transition". "E.ON" and "RWE" companies had to restructure their businesses to stay "afloat" in the changing conditions. The purpose of this article is to assess the impact of the state energy policy in Germany on large electricity companies activity − whether they remain financially successful and investment attractive or not. Vertically integrated companies started separating their subsidiaries from their structure. Then the extra ones were sold, and the important ones were kept. Despite the fact that "E.ON" and "RWE” companies used to be vertically integrated ones, they have now completely restructured. "E.ON" company's activities are dominated by the spatial principle of organization – the company operates on the basis of its branches scattered throughout the country and engaged in local electricity sales, while the activities of "RWE" company are dominated by the sectoral principle of organization. "RWE" company business is based on three types of fuel – alternative energy sources, fossil energy sources and nuclear fuel. The study showed that "E.ON" company restructured its activities faster, gaining certain competitive advantages in the market.

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