Focus on Central and Eastern Europe

Organic and external growth

With the exception of an ongoing rise in demand, the growth potential of EVN in the Lower Austrian energy segment is limited. This premise applies chiefly to the electricity business, whereas organic growth can be achieved in the gas and heating segments by expanding network and production capabilities. During the period under review, the go-ahead was given for EVN to move ahead with two large projects. On the basis of long-term planning for the years 2008 – 2012 approved by the Energy Control Commission for the Eastern control area and looking ahead to the gas year 2030, EVN has been given the go-ahead to construct two natural gas transmission pipelines with a length of 120 km and
147 km respectively, and thus ensure the long-term, demand-oriented safeguarding of the region‘s natural gas supplies.

Following the successful entry into the Bulgarian and Macedonian energy markets, EVN‘s priority is to optimally exploit the potential of these markets resulting from the enormous economic catching up process of this region. Whereas the growth potential in Lower Austria is limited to about 1 %  annually, themarkets in South East Europe expect a 3 %–5 % annual increase in electricity demand. To ensure a secure energy supply for its approximately 2.3 million customers in Bulgaria and Macedonia in the medium-term on its own, EVN plans to successively build up its own power generating  capabilities in these markets.

EVN took several important steps in this direction, with the modernisation of 11 small-sized hydroelectric power plants in Macedonia and the acquisition of the Bulgaria‘s second largest district  heating company EVN Bulgaria Toplofikatsia EAD in Plovdiv (five heat generation facilities with 1,259 MW of thermal capacity and 85 MW electrical capacity). EVN plans to expand electricity and heat generating capacity in Plovdiv. Moreover, in October 2007, EVN acquired the electricity distribution facilities of the local operating company Sunny Beach AD located on the Black Sea from EVN Bulgaria EP AD, fulfilling the stipulations of the original privatisation agreement.

EVN is also intensively examining the feasibility of expanding its power generation from renewable energy sources (wind, hydroelectric power and solar energy) in EVN‘s supply area in South East Europe, but also in neighbouring markets. Due to the low starting point, EVN‘s targets represent a major challenge for these countries.