Capital increase

In October 2007, MVV Energie AG increased its share capital by around Euro 25.9 million to Euro 168.7 million (+18.2 %) by issuing around 10.1 million new shares in return for cash contributions with subscription rights for shareholders. Having exercised its subscription rights, the City of Mannheim owns a 50.1% stake and thus remains the majority shareholder in MVV Energie AG.

Energy market design

MVV Energie AG continued to play an active role in the year under report on all levels of the energy policy decision-making process for the future design of German and European energy markets.

In this, we have advocated creating a level playing field for all participants in the market, as well as campaigning for an energy mix which is both climate-friendly and conducive to innovation. Our most important energy policy activities included our involvement in drawing up the “Baden-Württemberg Energy Concept”, numerous discussions with members of the federal parliament and ministry representatives in the run-up to the adoption of the “Integrated Energy and Climate Programme” and lobbying for pan-European transmission grid regulations to be as market-based as possible. We also actively accompanied the further development of a competition-friendly regulatory framework for the gas industry.

Success in nationwide sales activities

In the year under report, the MVV Energie Group achieved further notable market success with the electricity fund models it offers to industrial and commercial customers on a nationwide basis.

The beginning of March 2008 saw the nationwide marketing launch of our innovative Gas Fund product. Like the electricity fund models, the Gas Fund is designed specially for medium-sized customers and companies with multiple locations. These stand to benefit in future from our experience in the field of structured procurement.

Competing for private customers with green electricity

SECURA Energie GmbH, a company within the MVV Energie Group, has offered its own green electricity product nationwide since January 2008. Operating under the brand SECURA Ökostrom, the company aims to satisfy the growing demand for electricity which is environmentally-friendly in terms of its generation, yet inexpensive, while also meeting consumers’ need for a reliable electricity supply. Energieversorgung Offenbach, Stadtwerke Ingolstadt and RheinEnergie AG, Cologne, have now also acquired stakes in SECURA Energie GmbH.

New block at large power plant in Mannheim (GKM)

On 24 June 2008, Mannheim City Council voted with a large majority in favour of the construction of the new Block 9 at the large power plant in Mannheim (GKM). With an electricity output of 911 MW and a district heating output of 500 MWt, this new block should be completed by 2013. This decision was preceded on 11 June 2008 by the first public meeting on the subject in Mannheim, attended by around 1200 people, where advocates and opponents of the project alike could exchange their arguments. The building application is expected to be approved by the regional authorities in Karlsruhe in the first half of 2009.

Expansion of district heating supply

MVV Energie AG will be implementing a district heating expansion and concentration programme in Mannheim in the coming years. The district heating study for the Rhine/Neckar metropolitan region presented in April 2008 revealed that significant potential for expansion could be exploited economically by increasing the density of the existing district heating grid and significantly expanding the district heating supply. Not only that, the possibility of building a 21 km district heating transport pipeline between Mannheim and Speyer is also being investigated within the Mannheim-Speyer District Heating Network project.

Entry into balancing energy market

MVV Energie AG qualified in the 2007/ 08 financial year to participate in the balancing energy market. The relevant high technical and process standards were therefore met. The balancing energy pool at MVV Energie AG enables partners interested in cooperating to participate in the balancing energy market. MVV Energie AG is thus the first provider in south-western Germany, other than large transmission grid operators, to offer balancing energy as a product.

MVV Umwelt maintains growth course

Work commenced in October 2007 on building the replacement boiler 6 at the energy from waste plant in Mannheim. Construction work is progressing on schedule. More than one million tonnes of waste have been incinerated for the first time in Mannheim and Leuna. MVV Umwelt GmbH now aims to extend its successful growth strategy to promising foreign waste markets. On 26 September 2008, the Supervisory Board of MVV Energie AG approved the establishment of a British subsidiary to probe market opportunities in the UK.

Expansion in energy-related services business

The most important investment projects in the year under report included the construction of biomass cogeneration plants in Pfalzgrafenweiler and Mertingen, a gas-powered heating plant at Industriepark Ludwigshafen, and refuse-driven cogeneration plants at Industriepark Gersthofen and in Korbach. These decentralised plants use timber, biogas or residues and waste to generate energy, converting them in most cases into steam and electricity for supply to companies on location. The acquisition of three biogas plants also underlines the increasing focus of our energy-related services business on renewable energies and energy efficiency.

To secure our fuel procurement for biomass projects on a long-term basis, in the year under report we acquired a 70% shareholding in A+S Naturenergie GmbH, Pfaffenhofen.

In our real estate utilities business we were able to sign contracts to supply district heating over several years to a large-scale real estate portfolio and to more than 100 residential properties. In Berlin, four major energy-saving contracting projects are being implemented as part of a new energy-saving partnership with Berliner Energieagentur GmbH.

Major orders in international consulting business

The awarding of a planning contract in the US market represented a major success for our Group’s international consulting business. The project involves the local heating supply for a new residential area in Toledo, Ohio. This is one of the first residential areas in the USA to draw on environmentally-friendly cogeneration. Abu Dhabi is also relying on our expertise for the supply of electricity to Yas Island. This consulting order involves one of the largest infrastructure projects in the United Arab Emirates. In September 2008, the World Bank placed a major order worth US$ 10 million with MVV Consulting GmbH to advise the Afghan government in building up that country`s desolate electricity supply.

First prize in technology competition

In the “E-Energy” competition initiated by the Federal Ministry of Economics and Technology, a consortium of companies led by MVV Energie AG was awarded first prize in March 2008 for its seminal “Model City Mannheim” promotion project.

Family-friendly personnel policies

MVV Energie AG was awarded a certificate for its family-conscious personnel policies in the “audit berufundfamilie®” promoted by the federal families and economics ministries in June 2008. In this audit of compatibility between professional and family commitments, we received top marks in particular for the flexibility of our working hour model and the specific childcare facilities on offer.