Overview:
Verbund AG is Austria’s largest electricity company, playing a crucial role in supplying power across the nation and beyond. With a history dating back to 1947, this public stock corporation, listed under ISIN: AT0000746409, is headquartered in Vienna, Austria. Verbund AG is a major player in the energy industry, particularly known for its commitment to renewable energy. Over 90% of the electricity it generates comes from hydropower, making it a leader in clean energy production in Europe. The company generates more than 40% of Austria’s electricity, positioning it as a vital force in the region’s energy market.
History:
Founded in 1947, Verbund AG was established as the successor to Alpen-Elektrowerke, which played a significant role in Austria’s post-war reconstruction. Its original mandate was to plan, construct, and manage large-scale power plants and the national electricity grid, which eventually led to its name, “Verbund,” meaning “network” or “connected” in German. Over time, Verbund expanded its scope to manage Austria’s supra-regional power grid, operated through its subsidiary, Austrian Power Grid (APG).
The turning point for Verbund came in 1988 when the Austrian government partially privatized the company. Following Austria’s accession to the European Union in 1995, Verbund adapted to the liberalization of energy markets, focusing more on international operations and reducing its workforce by half without any redundancies.
Energy Infrastructure:
Electricity Transmission:
Austrian Power Grid (APG), a wholly owned subsidiary of Verbund AG, manages the electricity transmission network, handling the high-voltage transport of electricity. APG oversees a vast infrastructure that includes several transformer stations and high-voltage grids at 380 kV, 220 kV, and 110 kV. APG plays a pivotal role in ensuring that electricity from Verbund’s power plants is efficiently transmitted across Austria.
Power Generation:
Verbund’s energy portfolio is heavily reliant on renewable sources, with hydropower as the backbone of its operations. The company operates 128 hydroelectric power plants across Austria, including 22 storage power plants and 92 run-of-river plants. The majority of these plants are located in the Alpine regions of Salzburg, Tyrol, Carinthia, and Styria, as well as along major rivers such as the Danube, Inn, and Drau.
Verbund also operates gas-fired thermal power plants at Mellach, which are used primarily for grid support. The Mellach plant includes both district heating and gas-steam plants, although coal-fired operations ceased in 2020.
In the field of wind energy, Verbund manages several wind farms in Austria and abroad, with notable projects in Romania (Casimcea Wind Farm) and earlier investments in Bulgaria.
Electricity Composition & Labeling:
Verbund AG’s commitment to renewable energy is reflected in its electricity labeling. According to reports from Austria’s regulatory body E-Control, 100% of the electricity supplied to household and business customers is derived from renewable sources. This underscores Verbund’s leading role in driving Austria toward a sustainable, low-carbon future.
Corporate Structure:
The corporate structure of Verbund AG includes several business areas:
- Generation & Transmission: Verbund generates electricity primarily through hydropower and transmits it via APG’s infrastructure. It also operates two natural gas-fired thermal plants for grid support.
- Trade & Distribution: Verbund is involved in electricity trading across 12 European countries. It sells electricity to both wholesale markets and end consumers, including large industrial players and municipal utilities.
- Subsidiaries & Investments: Key subsidiaries include Austrian Power Grid AG and VUM Verfahren Umwelt Management GmbH, among others.
Shareholder Structure:
While Verbund AG is a publicly traded company, the Austrian government retains 51% of its shares, ensuring a significant level of state control. This structure was established following the partial privatization of the company in 1988. The remaining 49% of shares are publicly traded on the Vienna Stock Exchange.
Environmental Commitment:
Verbund AG is widely recognized for its environmental leadership, particularly its focus on clean and renewable energy. Nearly 96% of its electricity production comes from renewable sources, predominantly hydropower. The company is also expanding its wind energy projects, with an emphasis on innovation in renewable technologies.
Criticism:
Despite its strong environmental track record, Verbund AG has faced criticism in the past, particularly regarding its involvement in cross-border leasing agreements during the 1990s. These deals involved leasing power plants to foreign investors, which some saw as compromising national control over critical infrastructure. However, many of these agreements were reversed by 2009.
Key Financials (as of 2023):
- Revenue: EUR 10.45 billion
- Number of Employees: 4,095
- Chairman of the Board: Michael Strugl
- Chairman of the Supervisory Board: Martin Ohneberg
Looking Ahead:
Verbund AG continues to be at the forefront of Austria’s energy transition. With increasing investment in wind power, the company is set to strengthen its position in the renewable energy sector. As Europe moves towards decarbonization, Verbund is poised to play a key role in providing sustainable electricity, both in Austria and across Europe.
Conclusion:
Verbund AG is more than just Austria’s largest electricity provider; it is a pioneer in clean energy. Through its focus on hydropower and other renewables, the company exemplifies how traditional energy firms can lead the way toward a more sustainable future. With its deep-rooted commitment to environmental responsibility and innovation, Verbund AG remains a critical player in Europe’s energy landscape.
References:
Official Verbund AG website: Verbund AG
“Verbund AG.” Wikipedia. Available at: Verbund AG – Wikipedia