Vattenfall: A Swedish State Owned Energy Company

Vattenfall is a Swedish state owned energy company with 35,000 employees, with over 17,000 working in Germany. Together it produces heat and electricity from six energy sources: wind, hydro, biomass, nuclear, coal and gas. Throughout much of Europe, Vattenfall, has become a familiar name amongst many of the continents consumers. Vattenfall, which is Swedish for ‘waterfall’, has expanded into many countries including Finland, France, Germany, Poland, Holland and Britain, since 1992. Because of this ambitious expansion program, it has become one of the largest wind power operators in Britain and the third largest electricity producer in Germany. Industry insiders were expecting the company to join in Germany’s EON and France’s EDF as one of Europe’s top three electricity producers.

Its investment and acquisition programme has resulted in it having a wide variety of generating capacity across Europe. In 2012, it generated 88.8 TWH and 4.1 TWH of heat to nearly a million customers, resulting in an operating profit of SEK 27,747 million (30,793) reports Vattenfall Annual report 2012. Its generating assets include one of the world’s largest offshore wind farms, at Thanet in the United Kingdom and have part ownership in various nuclear power plants in Germany and Sweden. It also owns biomass, gas and coal fired power plants in Germany, Holland and Denmark. In 2009, Vattenfall generated electricity from fossil fuels 52%, nuclear power 25%, Hydro Power 21% and other sources 2%. In addition to generating electricity, Vattenfall owns a Brown coal strip mining operation in the Lausitz region of eastern Germany for use in its power stations. Such an activity has met opposition from residents near such mines and from environmentalists because it is the most polluting coal on the market. Because of its mining operations archaeologist have found fossilised remains put back evidence of humanity to 130000 years ago, at present man’s historical records date back 40,000 years.

Unfortunately, due to the recession of 2008 Vattenfall has had to put a brake on its ambitious expansion programme. It has major problems with is German coal and nuclear plants and gas plants in Holland. All because the market conditions in the European power sector have dramatically changed for the worse, because of the 2008 recession. Europe wide there has been a drop in demand for power resulting in lower wholesale energy prices. Also in Europe’s largest market Germany, the government has made significant changes its Energiewende, Germany's push to abandon nuclear energy and promote renewable sources.