BKW Plans USD 203M Renewables Investment

Switzerland-based BKW FMB Energy is planning to increase its investment in renewables, as it looks to take advantage of new government subsidies.

BKW plans to invest CHF 250m (USD 203m) over the next five years into technologies such as small hydroelectric plants, biomass, wind, solar and geothermal energy, creating a new subsidiary in the process.

Currently BKW, which is majority owned by the canton of Berne (53%) with E.ON Energie holding a 20% stake, produces power mainly from hydroelectricity, though it also has one 355MW nuclear power plant, one wind farm with 7.7MW, one 560kW solar plant and one waste gas and cogeneration plant with 3MW.

The Swiss government brought in a new law in March which as well as opening the electricity supply market, also set aside up to CHF 320m (USD 260m) a year in subsidies for electricity producers that use renewable energy. According to a BKW spokesperson, the subsidiary is in the early planning stages and has yet to be named, but it has begun recruiting up to 20 engineers. It has not yet decided which of its current renewable energy operations will be included in the new entity.

By: New Energy Finance

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