Dr. Birnbaum joined E.ON SE as a Member of the Board of Management on 1st July 2013. In his current role he is responsible for Trading & Supply, Distributed Energy, Engineering & Projects, Commercial Operations, Politics & Regulation, Technology & Innovation and Consulting.
Dr. Birnbaum is also Vice Chair Europe of the World Energy Council (WEC), Vice President of Eurogas and Member of the Board of the German Association of Energy and Water Industries (BDEW).
With more than 18 years of experience in the energy industry, Dr. Birnbaum has held senior management positions in several companies. Before joining E.ON, Dr. Birnbaum was a Member of the Executive Board of RWE AG for five years focusing on strategic topics.
He also held a leadership role at McKinsey & Company Inc., where he was appointed partner in 2001 and elected as senior partner in 2006. In this role, Dr. Birnbaum was a Member of the Management team for the European energy sector.
1. In your perspective, what is the role of natural gas in the future?
All forecasts show that natural gas will be plentiful for many years to come. Given its abundance, natural gas can satisfy emerging countries’ rising energy demand while serving as an ideal partner for intermittent renewable generation.
Therefore, the most important question for Asian buyers is not whether or not gas will play a role: it is how much it will cost.
If we look at the big picture, gas is only one part of an enormous puzzle. The main challenge for Asian and European leaders will be finding the right mix of conventional, renewable, and decentralized energy sources, while efficiently optimizing the supply of global commodities.
2. What is the significance of LNG to E.ON’s overall strategy?
LNG supply and trading plays a vital role in E.ON’s growth strategy. We source, transport and market LNG on a global scale, which enables us to diversify our own gas supply, while offering a wide range of products and services to meet the needs of our partners.
We are also backed by an extensive portfolio of assets offering direct access to markets throughout Europe via on- and off-shore pipelines, underground storage facilities, and regasification terminals.
3. What is E.ON’s role in energy?
As one of Europe’s largest energy companies, E.ON is active along the entire energy value chain, including conventional, renewable and decentralized generation, natural gas, energy trading, distribution and retail.
Our primary objective is to use the full weight of our experience and know-how to improve the lives of our customers. This means getting better at listening to our customers and giving them the solutions they need. It means ensuring that energy supplies continue to be secure and competitive, but also sustainable. And it means developing new business models, leveraging new technologies to improve the way we use energy.
This is an enormous task, but building energy systems is in our DNA. For example, we are developing renewable projects on an industrial scale. We currently operate more than 10 gigawatts of renewable generation capacity across Europe and North America, including London Array, the world’s largest offshore wind farm. We are also developing the technology to optimize the operation of conventional power stations in markets where the share of intermittent wind and solar power is rapidly increasing. In designing any energy system, it is vital to take into account the impact that a rapid build-up of renewable energy will have on the stability of the grid.
Finally, energy companies must be able to manage risk and create value from fundamental shifts that have taken place in global energy markets. There are plenty of opportunities out there for organizations that understand relationships between commodities and regions and can react quickly to changes in supply and demand.
4. What are some of the challenges facing E.ON in the Asian market?
The greatest energy demand growth in the next two decades will be in Asia. Economic growth will increase the demand not just for generation capacity, but also for coal and gas.
As many Asian countries are net importers, the cost pressures they face are leading them to optimize their supply strategies. In this regard, I believe Asian and European energy players should explore ways to cooperate in achieving their respective objectives.
E.ON is a well-established leader in Europe, but in Asia our biggest challenge will be to find partners who represent a good fit for us. We are looking to build strong and productive energy partnerships that will last.
5. How can forums such as SIEW 2014 help meet these challenges?
Whether in Asia or Europe, we are faced with rising customer expectations, an increasingly competitive global market, and climate change. Energy companies must evolve and innovate or become obsolete. But how do we manage these challenges? And how do we successfully manage the transition to smarter and more sustainable energy systems? SIEW gives us an excellent and timely opportunity to debate these questions and build a platform for cooperation going forward.
SIEW is undoubtedly one of the key dates on the Asian energy calendar. It gives energy leaders a unique forum to explore the future of our industry. That’s why E.ON is taking part and I’m delighted to have the opportunity to deliver this year’s keynote address.