9th meeting of GEN-I’s partners on current energy market trends

GEN-I organized the 9th meeting of its partners at the company’s business premises, with 50 partners in attendance. During the meeting, representatives of the GEN-I Group and GEN Group presented positive operating results and the bases for continuing work that will facilitate the achievement of established objectives by both groups and their partners in the future. 

The meeting was opened by Martin Novšak, MBA, the Managing Director of GEN energija and Vice President of GEN-I’s Management Board, who briefed participants on the positive operating results of the GEN Group and GEN energija: “The GEN Group ended a successful 2015 with a net profit of EUR 15.3 million. Profit was lower than in 2014, but taking into account the low selling prices of electricity on the market, below average hydrologic conditions, particularly compared with the record year in 2014, and planned maintenance at the Krško Nuclear Power Plant, the aforementioned results were very good. The company and the GEN Group adjusted to their greatest challenge – a sharp drop in electricity prices on European exchanges – through the rationalization and optimization of their operations. Despite demanding market and production conditions, the operating results of GEN energija and the GEN Group confirm that we managed operational risks well, while the extension of the operational life of the Krško Nuclear Power Plant until 2043 represents an important milestone for our continuing operations.” 

Robert Golob, Ph.D., President of GEN-I’s Management Board, added: “The 2015 business year was very important for GEN-I from several perspectives: the initial phase of procedures for the merger with Elektro Energija is successfully behind us, while we achieved excellent operating results, with EUR 1.7 billion in revenues generated and 39.7 TWh of energy sold on 22 European markets. We also marked the 10th anniversary of the successful development and start of operations of GEN-I, which has ranked as one of the fastest growing European energy companies since its establishment.”

The central focus of the meeting was a review of current price trends on the energy market. “Despite already low electricity and natural gas prices in absolute terms, the trend of falling prices continued last year and was further accelerated by the fall in oil prices due to excess quantities on the supply side,” offered Dejan Paravan, Ph.D., Executive Sales Director at GEN-I, who added, “If we also add to the equation new investments in the production of electricity from renewable sources and falling consumption in the EU despite positive economic growth, a drop in electricity prices is also inevitable in the future.” He then presented those in attendance recommended purchasing strategies, and how to take advantage of falling prices while hedging against a sudden rise. 

Borut Kozan, Ph.D., Retail Sales Portfolio Specialist at GEN-I, presented developments on the oil market. “The turbulent developments in the energy sector have been driven for the most part by oil, the price of which has fallen by more than 50% in the last year. Understanding the cause for the current situation regarding this key energy source helps us predict developments and trends in other energy sources in the near future.” 

And because past experience shows that customers achieve significantly higher savings by selecting the right models and services, and through negotiations with various suppliers, Andrej Dernikovič, Senior Key Accounts Manager at GEN-I,  presented new products and services in GEN-I’s portfolio that are simpler, more flexible and that provide increased protection against unwanted events on exchanges (e.g. rising prices), while allowing customers to recognize and exploit market potentials in a timely manner, and thus opportunities for additional earnings and/or a further reduction in energy prices.

GEN-I has been a partner in the European FutureFlow project since January 2016. The aforementioned project will link four transmission system operators from Central and Southern Europe that face increasing challenges on a daily basis in ensuring energy system security. GEN-I’s role in the project, which was approved by the European Commission in the scope of the Horizon 2020 Initiative, lies in the research and development of guidelines for the participation of business and industrial customers and diverse resources in the analysis of cross-border potentials for the balancing of consumption, and in the confirmation of a prototype platform developed as part of the project. 

GEN-I’s role in the FutureFlow project and specific solutions and opportunities for customers on the ancillary services market were presented by Tomaž Oštir, the Head of GEN-I’s Business Development Department “Changing conditions on electricity markets and the development of smart grids facilitate the more active participation of customers on those markets. Once passive electricity users are becoming active members of balancing groups and so-called aggregators.  Users with unused and unexploited generators or who are able to modify their own consumption will be able to take advantage of opportunities for additional earnings on the markets of the future by adjusting their consumption.” GEN-I, which has been an active participant on the ancillary services market in Austria since the middle of 2015, has already achieved a string of successes in this area. “During this time, we have successfully made more than 250 activations for the purpose of supplying tertiary system reserves, while we intend to expand that potential to neighboring markets, through participation in the EU FutureFlow project, and to offer the possibility of participation on the Austrian, Hungarian and Romanian markets to Slovenian companies,” added Tomaž Oštir. 

Its flexibility, efficiency, innovativeness and view to the future are GEN-I’s main traits, and represent the right combination for the challenges brought about by continuously changing market conditions. The company will thus march forward in 2016 and in the future as a stronger and more responsive partner for business and household customers. 

Photograph 1: Martin Novšak, MBA and Robert Golob, Ph.D.

Photograph 2: (from left to right) Dejan Paravan, Ph.D., Martin Novšak, MBA, and Borut Kozan, Ph.D.

Photograph 3: Dejan Paravan, Ph.D.

Photograph 4: Tomaž Oštir

Photograph 5: Andrej Dernikovič

Current news