Merger planned in the Zurich energy sector
The City of Zurich is examining a takeover of Energie 360 Grad by Energiewerke des Kantons Zürich (EKZ). After joining forces, the city of Zurich's energy infrastructure could largely be operated from a single source. The parties involved see this as a decisive step towards decarbonisation.
According to a joint statement, the City of Zurich and EKZ have decided to endeavour to have Energie 360 Grad AG taken over by EKZ. The main shareholder of Energie 360 Grad is the City of Zurich with a 96 per cent stake. The remaining 4 per cent is held by 22 political municipalities.
In a resolution dated 31 May 2023, the Zurich City Council decided that Elektrizitätswerk der Stadt Zürich(ewz) should be the sole municipal provider for large energy networks in the city. Energie 360 Grad’s large energy networks in the city were to be transferred to ewz.
As a result, Energie 360 Grad increasingly focussed on activities outside the city area. As a result, municipal ownership was examined, as were possible partnerships for Energie 360 Grad. EKZ and the City of Zurich have now agreed to enter into exclusive talks regarding a takeover of Energie 360 Grad by EKZ.
According to the press release, the energy infrastructure in the canton of Zurich could largely be operated from a single source if EKZ and Energie 360 Grad were to join forces. EKZ already supplies 100 per cent renewable electricity. EKZ would consistently pursue Energie 360 Grad’s strategy towards renewable gases and the installation of charging infrastructure for electric cars. “This would be a decisive step towards decarbonisation and achieving the climate targets,” said the two negotiating partners.
The municipal council and the EKZ Board of Directors must now decide on the realisation of the sale of Energie 360 Grad to EKZ. According to the information provided, the aim is to finalise a possible transaction by the end of 2026.