German energy giant RWE wants to invest in Israeli technologies as part of its strategy of expanding its global business. The company plans to invest tens of millions of euros annually in finding technologies that will enable it to provide added value to its customers. RWE's innovation manager is visiting Israel next week for her first round of meetings with Israeli companies having investment potential.
"Israeli entrepreneurs are not always aware of Germany's potential as a target for commercial, industrial, economic, and technological cooperation," says RWE Israel Innovation general manager Mickey Steiner, who was SAP Labs Israel managing director until the end of 2013, and is now also VP of the Germany-Israel Chamber of Commerce. "RWE's new focus in new areas, which is related to its current business, is a golden opportunity for entrepreneurs and companies with technologies concerning the relevant areas.
"Globes": What is the company looking for in Israel?
Steiner: "Holistic energy management technologies, meaning technologies that will facilitate smart management of electricity networks - what's called a smart grid, and smart home energy management technologies. These technologies make it possible to control a network of home electrical appliances. For example, a smart electrical network will be able to operate a washing machine at night, when the rate is low. The network will also know how many products are in the refrigerator, and how much electricity it needs. In this way, we'll save electricity, and the cost for consumers will fall."
Do you plan to install new technologies in the Israeli electricity sector?
"That's not our objective. Our customers are in Europe, where the electricity sector is completely different than the Israeli electricity sector, and where energy is managed differently. In Europe, there is one grid that links countries, and there are many power stations. There are many sellers and buyers, and a customer can also be a buyer for another company. In effect, electricity in Europe is a commodity; in other words, at any given time, a company can buy electricity and sell it to someone else. We're looking for technologies that will enable us to manage electricity in this situation."
How is the grid actually managed?
"The first stage is the installing of smart meters at customers, whether they are companies or households. That makes possible a two-way flow of information and energy to and from the electricity supplier and customer. There is a trade in electricity in Europe, and the meters enable the customer to know at any moment how much electricity he consumes using which appliance and at what price. In Israel, the meters are stupid, and the rate is uniform. An Israel Electric Corporation (IEC) (TASE: ELEC.B22) employee has to come in person every two months to read the meter. That doesn't happen anywhere else."
What other technologies are you looking for?
"Cyber security, energy storage, and electric vehicles. Although Better Place did not succeed in putting its electric car venture into practice in Israel, an entire technology was created here on the subject of electric cars, and that's a rapidly growing field around the world. RWE already has thousands of machines for charging cars throughout Europe, and this is therefore an attractive field for us."
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2015
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