Energy Talks 2023

Reconciling existing challenges and long-term investment decisions

The speaker on stage at the RWE Energy Talks 2023, with a presentation screen in the background.
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A presenter explains the development of German gas storage filling levels using a chart in front of an audience.
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A presentation on Offshore Expansion 2023. The speaker stands before a screen with questions about profitability.
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The location and themes were quite fitting for this year’s edition of RWEST’s Energy Talks. On 9 and 10 March 2023, more than 50 clients came together in the FRALounge – the Fraport Group’s new venue – to exchange expertise. Besides offering spectacular views of the tarmac of Germany’s largest air traffic hub, FRALounge was also perfectly suited to many of the talks, which frequently touched on departure, dynamics, change and movement.

Living and working in the new energy world

To kick things off, host Dr. Hendrik Niebaum welcomed the 80 or so guests to the event. Niebaum, Head of Commodity Solutions at RWEST, pointed out that the war in Ukraine heralded the emergence of a new energy world, which would have been unimaginable at the last Energy Talks around 15 months ago. In light of this shift, it is important to establish a framework for the future and identify decisive actions so that the greatest of the many challenges we currently face can be overcome – reconciling high levels of uncertainty in the environment and long-term investment decisions without abandoning the market.

After the opening statement, the venue was the first item on the agenda or, to be more precise, Frankfurt Airport’s transformation into a cutting-edge airport. Felix Kreutel, Divisional Head of Property and Energy at Fraport AG, outlined what the energy transition means for airports and air traffic on a practical level.

RWE’s transition

Following that, RWE’s Chief Financial Officer Dr. Michael Müller provided an overview of the transition that RWE had undergone. He stressed that RWE had remained in a position to serve its customers over the last year, which proved to be a challenging one. “We also provide assistance where needed in the short term, such as with LNG or lignite, while actively promoting long-term structural change.” Müller touched on examples such as the Con Edison takeover in the USA and the new hydrogen/ammonia plans for Europe to demonstrate that RWE has stepped things up a notch in its Growing Green strategy. “We are helping industry to decarbonise, and these efforts go beyond Germany and Europe,” said the group’s CFO.

Living up to their name

In the discussion that followed, Müller and his audience explored the question of what impact the current situation would have on industry. Participants agreed that the war in Ukraine would result in higher gas and electricity prices in the future, which would pose further adjustment challenges for energy-intensive industries. The lively discussion saw the Energy Talks live up to their name and once again demonstrated that discussion and dialogue often yield the best results. A BBQ and an exciting guided tour of the new Terminal G at Frankfurt Airport rounded off the first day for attendees.

Market analysis to kick off day two

Moderator Conny Czymoch warmed up the audience for a packed agenda at the start of day two. First up was a major market analysis, including a review and outlook, which was provided by Dr. Tobias Zimmermann, Strategic Market Analyst at RWEST. A key feature of his presentation was an analysis of the gas crisis and the possible alternatives for energy supply in Germany. This was rounded off with a lively Q&A with attendees.

RWEST CFO Gunhild Grieve provided the perfect follow-up on these points. Grieve highlighted the impact that the volatile market period from the second quarter of 2022 onwards had on RWEST as a trading company. What’s more, the RWE manager offered her perspective on regulatory issues such as gas and electricity price brakes and outlined the changes she expects to see in market design. “We must take care that liquidity is not lost on the futures markets with all these regulatory measures,” said Grieve. Much of the ensuing Q&A session focused on future markets for green hydrogen, voluntary carbon credits and industrial power-to-heat.

Inflation Reduction Act and offshore

After a coffee break, the offering of an outside perspective proved to be a highlight of the event. Dr. Felix Christian Matthes, Research Coordinator for Energy and Climate Policy at the Öko-Institut in Freiburg, explained the implications of the American Inflation Reduction Act (IRA) for Germany and Europe and the possible means with which they could respond. The focus turned to the future as the event drew to a close. The Director of Offshore Development for Germany at RWE Offshore Wind GmbH, Till Schwarzlose, outlined the factors to be considered in the upcoming offshore expansion and how the audience could benefit from it. After lunch, the Energy Talks attendees embarked on their very own journey armed with a wealth of new knowledge.