Powering the Energy Transition: A Story of Strategic Transformation

BNP Paribas has been an important partner in BKW’s transformation from a traditional Swiss electricity provider to an international energy and infrastructure company. Through innovative financing solutions and comprehensive banking services, this long-standing partnership has helped BKW expand its renewable energy portfolio, develop its service business, and accelerate its journey toward achieving net-zero emissions by 2040.

From Regional Utility to International Energy Pioneer

Founded in 1898, BKW has undergone a remarkable transformation in recent years. What began as an electricity production and distribution company in the Swiss Canton of Bern has evolved into an international energy and infrastructure powerhouse employing more than 12,000 people across Europe. The most significant turning point came at the beginning of the 2010s when BKW made a strategic shift toward renewable energy, marking the start of its sustainability-focused transformation.

Strategic Partnership for Sustainable Growth

“Since 2014, our growth investments in the energy business area have exclusively gone towards renewable energy production capacities,” explains Flavio Lingeri, BKW’s Head of Treasury. This commitment has yielded impressive results: today, BKW’s installed production capacity mix is more than 75% renewable. In 2023, renewables contributed over 60 % to the production, with 42% from hydroelectric power and 20% from wind energy – significantly exceeding the OECD average of 35%. This success highlights BKW’s position at the forefront of the energy transition.

BNP Paribas has been instrumental in supporting BKW’s transformation since the early 2010s. The partnership began with trade finance support for BKW’s expanding renewable energy business, including guarantees for wind farm operations and power exchange participation. Marco Scheiwiller, Head of Utilities Coverage Switzerland at BNP Paribas, notes, “Our relationship dates back more than 20 years, with the first agreement for OTC derivatives signed in October 2004. We have supported BKW across various initiatives, including the financing of an Italian wind farm in 2015, but, for sure, a landmark moment in this partnership came in 2019 when BNP Paribas helped BKW become the first SIX-listed Swiss company to issue a green bond.”

This pioneering green bond issuance marked a significant milestone in sustainable finance for the Swiss market, demonstrating BNP Paribas’ expertise in environmental, social, and governance (ESG) financing. The bank’s comprehensive approach and deep understanding of sustainable finance proved invaluable for BKW.

“What was really outstanding was the breadth of their experience and knowledge in that field,” recalls Lingeri.

This successful collaboration led to two additional green bond issuances in 2022 and September 2024.

Innovative Solutions for the Net-Zero Journey

“Our goal is to support BKW in its entire transition,” says Scheiwiller. “With 63 countries in our network and a “One Bank” approach, we can provide comprehensive banking services seamlessly across borders.” This global reach has proven especially beneficial for BKW’s international expansion and sustainable development initiatives.

BNP Paribas’ newly awarded role as BKW’s cash management bank for Europe, its provision of guarantees, and its strong expertise in Global Markets demonstrate the depth of this collaboration.

Looking ahead, both companies are committed to accelerating the energy transition. BKW continues to expand its renewable energy portfolio and will reduce the CO2 intensity by 2030 to 50 % from the 2022 baseline. BNP Paribas aims to increase its financing of low-carbon initiatives to 80% by 2028 and 90% by 2030. As Scheiwiller emphasizes, “Sustainability is at the heart of our business model.”

This enduring relationship between BKW and BNP Paribas exemplifies the vital role visionary energy companies and sustainable finance leaders play in driving the transition to a carbon-neutral future. As BKW continues its journey toward net-zero emissions, BNP Paribas’ comprehensive support and innovative financial solutions remain crucial enablers of this transformation.