Business

Uniper launched to focus on conventional generation, including hydropower

E.ON separated its operations from Uniper’s effective Jan. 1, finalizing a business transition more than a year in the making.
Uniper launched to focus on conventional generation, including hydropower

E.ON separated its operations from Uniper’s effective Jan. 1, finalizing a business transition more than a year in the making.

Uniper is a newly established company that will operate independently from its headquarters in Dusseldorf, focusing on power generation from hydro, natural gas and coal facilities, as well as global energy trading. The company has about 40 GW of generating capacity. E.ON’s website indicates hydro makes up nearly 5 GW of its generating capacity (which was almost 59 GW before the split).

The E.ON website says it has “major asset positions in Germany, the United Kingdom, Sweden, Russia, the U.S., Italy, Spain, France and in the Benelux countries.”

As a result of this separation, E.ON will now focus on renewables (not including hydro), energy networks and customer solutions.

E.ON announced in November 2014 that it would respond to the distinctly different challenges of the new and conventional energy worlds by dividing its businesses into two companies. “We are convinced that it’s necessary to respond to dramatically altered global energy markets, technical innovation, and more diverse customer expectations with a bold new beginning,” said E.ON Chief Executive Officer Johannes Teyssen. “E.ON’s existing broad business model can no longer properly address these new challenges. Therefore, we want to set up our business significantly different[ly].”

Bernhard Reutersberg was appointed chairman of the Uniper supervisory board in December 2015, and Klaus Schafer left E.ON to become CEO of Uniper.

The spinoff of Uniper is expected to take place later in 2016, once E.ON shareholders approve the move.