German utility EnBW is reviewing its strategy in the context of the Energiewende and estimates that the earnings contribution from conventional power generation will drop by 80% by 2020. This is to be fully offset by strong growth in the areas of renewable energies (250%), grid infrastructure (25%) and the decentralised sales business (100%). In 2014, the group will focus on the expansion of wind capacity. In the onshore wind area in Germany, the company plans to double the capacity of its wind farm in operation to 360 MW, and its secured project development pipeline to 1,000 MW. EnBW plans a significant expansion in Turkey, having recently signed a master agreement for a wind farm portfolio totalling 207 MW. In the offshore wind area, plans include the gradual commissioning of EnBW Baltic 2, the largest Baltic Sea wind farm to date. In the conventional generation area, one of Europe's most modern coal power stations, RDK 8 in Karlsruhe, is to be connected to the grid this year.
In 2013, EnBW posted a 29% drop in its net profit, from €652m to €463m (-90% for earnings per share) due to a difficult market situation and the particular burdens attributable to general energy sector conditions. External revenues grew by 6.3% to €20.5bn, based on higher gas sales volumes, higher revenues related to the German Renewable Energies Act (EEG) in the Grids segment, and the expansion of gas trading activities. In 2013, the group's electricity sales dropped by 5.6% in volume, from 136 TWh to 128 TWh. Gas sales soared from 73 TWh to 100 TWh (+37%).
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