A Prokon Journal Interview
The two new members of the supervisory board, Nikolaus Karsten and Dr. Jochen Herterich, on their work in the board and the perspectives of Prokon.
Karsten: We work trustingly together as a group of five and do not allow ourselves to be divided.
Herterich: In the light of the vote, we know the importance of resolving conflicts in advance. It is not about whitewashing issues but about finding solutions. It works one hundred percent on an interpersonal level - and in terms of substance.
PJ: How often do you meet as a board?
Karsten: There are four board meetings per year. In between, meetings via video conference take place every two weeks, also with the management if necessary.
Herterich: We do this very consciously. It is good for us to exchange regularly, to understand what is happening, and to develop a common approach.
Herterich: I see it as a great advantage that the panel is composed in such a heterogeneous way, with each individual being able to contribute their very specific strengths and experiences.
Karsten: We complement each other well. Petra Wildenhain has in-depth expertise in cost-effectiveness analysis and has a sympathetic, balancing approach. Rainer Doemen is a stalwart, well-connected within the renewables scene, and Ragnhild Ofterdinger has a deep insight into the organization also from the perspective of the employees. I have knowledge in the energy industry and an idea of how to make money in the sector. Herterich: We combine clear and open communication with great respect for each other. This often leads to good solutions after lively discussions. I bring in management and restructuring experience and know how to successfully evolve a business model."
Karsten: The perspective is different from the outside. Also, the situation has changed: for a while, Prokon was fighting for survival, now it's about growth. We are simply doing well, we have a good foundation. Currently, the international business is making great contributions to the results. Poland has turned positive and offers future prospects. In Finland, we have so far connected over 500 MW to the grid and despite some doubts in the initial phase of the cooperative, we have generated good returns with project development. We need to closely observe the market here at present.
Herterich: We don't have a different perspective. We have an expanded and more detailed perspective in the new supervisory board. Answers to our questions also lead to joint strategic considerations. Therefore, expanding the service sector is a very important building block for Prokon's success. This provides us with the expertise in-house to ensure the continuous operation of our plants – making us independent. Additionally, we can offer our expertise as a service to third parties.
"For a while, it was about survival for Prokon, now it's about growth. We have a good foundation."
Nikolaus Karsten, Member of the Supervisory Board
Herterich: Looking back does not bring us forward. There are facts that have been created and with which we must live. In addition, the conditions are much better now than in 2018 due to what has been achieved so far. Now we want to double the production of green electricity with our own plants. If we approach it correctly, we can even more members excited about it.
Karsten: Market developments have fundamentally changed the picture: How to service the bond at electricity prices of three cents is in the past a serious concern. In that phase, we have brought over 100 megawatts online and sold them. Thankfully, we have overcome those difficult times. The crucial question now is: How can we succeed in bringing as many plants online and keeping them with the typical Prokon pioneering spirit? With current electricity prices at around eight cents, our project pipeline is well stocked, a lot is in the approval process. Now, the aim is to raise as much capital as possible.
Karsten: We need around 25 million euros additional equity per year, preferably more. The fact that this can be done is shown by the past year - even though, of course, the record dividend played a crucial role in that. But we have strong arguments: the return is still respectable, and it's also about real future projects that will make the world better for our children.
Herterich: Doing the right thing and benefiting from it - this message needs to be communicated more strongly externally. The regional advisory boards also contribute to this. Among other things, with wind farm festivals, we can show interested people what Prokon can do.
Herterich: It is true that if you continuously shrink a balance sheet, a company cannot survive in the long run. However, this risk no longer exists. Our balance sheets are improving - even though we may not always be able to replace everything we write off. Nevertheless: We have more on the plus side, we have included parks in the balance sheet and will continue to be able to do so.
Karsten: The wind parks are our babies that we do not sell but want to raise. The more money we raise for them, the better we succeed."
"Our common goal is to double electricity production. To achieve this, the Supervisory Board is working together with the Executive Board."
Jochen Herterich, Member of the Supervisory Board
Karsten: The bond becomes less of a burden with each year due to continuous repayment. Prokon has demonstrated that a gradual renewal of the wind park portfolio is possible.
Herterich: The bond has essentially evolved into a standard corporate loan - even a quite favourable one in the current market environment. This looked different in the past with electricity prices at two cents. By 2030, when the loan is serviced, the company can operate across the entire spectrum, including in terms of financing.
Herterich: This question is currently not relevant. If we raise money, it will be clearly for Prokon. The management and supervisory board agree on this: There will be no sale of wind energy projects in Germany or Poland in the foreseeable future.
Karsten: Historically, the founding of Windauf is understandable. Short-term revenues were needed for survival. An 80.1% sale to Windauf with a planned merger was a sensible solution for that time.
Karsten: We want to work towards the merger of the two companies after the 2030 bond expires.
Herterich: This is also less legally problematic with cooperatives. Nikolaus Karsten and I are applying for admission as regular members of Windauf eG.
Herterich: This is a learning process for both sides, which is being very positive. We ask many questions and receive good, well-founded answers. This works great. Our task as a supervisory board is to bring in our experiences and to act as advisors. So far, we have come out of all the discussions with reasonable solutions.
Karsten: Our common goal is to double the electricity generation. If all cooperative members pull together, we will also be successful on our way. For this, we work together as a supervisory board with the board.
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