German power stations are altogether outdated: over half of all German power stations are at least 25 years old. Modernisation will be urgently required in the near future.
According to Professor Ulrich Wagner, energy scientist at the Technical University of Munich, considerable costs will arise for electricity producers at the latest as of 2007. And Klaus Pitschke, company spokesman at Bewag AG, expects investments of up to 50 billion euros at the latest as of 2010. The reconstruction of existing power stations is necessary to safeguard the power supply for the future and obtain energy more efficiently. Environmental aspects such as the reduction of pollutant discharges are also very important.
These requirements are affecting the power industry at a time of change: the liberalisation of the European power market decided in 1996 has led to considerable distortions in the branch. New offers such as cross-selling, multi-utility and different energy services were positioned on the market. Regenerative energies are gaining in importance and being encouraged more intensely. Customers now have the choice of different providers and select the one they think is cheapest. Competition between the different electricity producers has intensified. In Germany alone, over 70 mergers and acquisitions have taken place within a few years. Extensive investments in IT and risk management were inevitable. Energy providers spent approx. 1.5 billion euros on new IT solutions.
Investing in this situation is not easy. How can urgently required reconstruction of power stations be realised without if possible straining liquidity? Deutsche Leasing offers you the answer to these financing problems.