Germany is in the middle of the energy transition. Coal and gas out, sun, wind and water in. 🌞💨🌊 That sounds like a purely German thing at first - but it's not. Because when billions are pumped into new power lines, grids and hydrogen infrastructure in Germany, the cash registers in Switzerland are also ringing. For example at the R&S Group ($RSGN ) - a transformer manufacturer based in Sissach (BL) and one of my favorites. But what's the connection?
Billions for new lines - and what does it take?
Germany needs to get its electricity grid up to scratch so that all the green electricity from wind and sun can actually get to where it is needed. 🔌 In concrete terms, this means more lines, new substations and tons of technology - including transformers.
A few figures:
- According to studies, it will take 650 billion euros by 2045 for the electricity grid alone. 🤯
- In addition, a new hydrogen core grid with over 9,000 km of lines will be built.
- Large wind farms such as "He Dreiht" (960 MW capacity) are coming on top. 🌬️
And this is where it gets exciting for the R&S Group.
Who supplies the transformers?
The R&S Group produces exactly what is needed for such a mega conversion: Transformers and switchgear in all sizes - in all sizes, from small distribution transformers to large power transformers with up to 120 MVA. ⚡ The company is not only active in Switzerland, but also delivers throughout Europe - and has over 100,000 transformers worldwide at the start. 💪
In order to position itself even better, R&S recently acquired the Irish transformer manufacturer Kyte Powertech acquired. The deal was worth approx. 264 million francs francs. As a result, R&S now has an even stronger presence in the European market - including Germany. 🏗️
Why an advantage right now?
In Germany, it's not just the politicians who are motivated, the pressure is also high: old grids won't last much longer and without a reliable infrastructure, no energy transition is possible. That's why planning and tendering are currently taking place on a grand scale - and that's exactly where specialized providers like R&S come into play.
Another plus: many transformers have to be "Made in Europe" in order to comply with EU directives or to be delivered more quickly. Despite not being a member of the EU, Swiss manufacturers are often still in demand because of their quality, reliability and proximity.
So: while Germany is building grids, building electricity storage systems and planning hydrogen pipelines, a Swiss company could make a lot of money in the process. 💼💡
What do you think? 🤔💭 Where and how else could you benefit?
Happy investing
GG
Sources:
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