German clean energy major innogy has unveiled a new strategy as it aims to take lead of the clean energy transition by 2025.
In a statement yesterday, innogy revealed that it was to place renewed importance on a strategy surrounding “the four Ps”, namely;
- Market position, referring to its stated aim to be in the top three leaders of any of its business activities;
- Performance, referring to its ambition to be among the most profitable companies in the industry;
- Portfolio, referring to its technology agnostic and “taboo-free” attitude to current business activities, and;
- Active partnerships, with innogy intending to pursue a partnership-based approach to become or remain the top energy partner for customers, municipalities and corporate or financial entities.
It will look to secure a top three position in all of its relevant markets by 2025 and is preparing to invest up to €1.2 billion in three particular segments – e-mobility, solar PV and glass fibre networks – over the course of the next year.
All activities, innogy said, are intended to “address the future energy system”.
“If you want to be successful in the energy world of tomorrow, you will need economies of scale and profitability, along with the respective skills. With the four keywords of "Position, Performance, Portfolio and Partnership", we’ve placed our strategic focus on precisely these critical success factors,” Peter Terium, chief executive at innogy, said.
Innogy has already amassed a network of circa 5,800 electric vehicle charging points across more than 20 countries, but the company intends to expand on this and establish a global standard – and platform – for e-mobility solutions.
The firm too already has a leg-up in the PV sector having acquired Germany-headquartered Belectric earlier this year. It intends to establish a “strong market position” across the European and North American solar markets as well as selected emerging markets, however the company has not publicly discussed which emerging markets it could target.
However innogy has also teased a more cutthroat attitude to business ventures in the future, stating that it will look to strengthen its portfolios through both new acquisitions and divestments.
Should a business unit not lead in terms of market position or profitability, it will in the future dispose of these units and recycle capital into markets and companies that can do so.
“In the long run, having a positive figure on the bottom line is no longer sufficient for a business segment. If we want to be viable in the future as a company, we need to be among the best. Our goal must be to rank among the market leaders by size and profitability. That’s why from now on no idea is taboo anymore,” Terium added.