Tensions in the Middle East, the war in Ukraine and Europe’s continued dependence on fossil fuels have put energy security back in the spotlight. But for Romeo Deplazes, CEO of Energie 360°, the fundamental issue lies elsewhere.

«The main driver is not geopolitical dependence, but CO₂ emissions,» he told finews. The two issues, however, go hand in hand. Fossil fuels often come from politically unstable regions, making the transition to renewable energy all the more important.

Billions for infrastructure

For investors, this development is creating long-term opportunities. Deplazes points to his company’s recent 150 million Swiss franc green bond issuance.

«For us, this was proof that the financial sector actively wants to support this transformation,» he said.

The real challenge, however, is not capital but infrastructure. Before households and businesses can use renewable heating or electric mobility, new networks and facilities first need to be built.

Energie 360° alone plans to invest around 700 million to 750 million Swiss francs through the early 2030s, primarily in district heating networks and electric vehicle charging infrastructure.

Using waste heat from data centers, the Volketswil energy center will supply carbon-neutral energy to provide around 20,000 households in the region with locally generated heating and hot water from 2027. (Image: Courtesy)

«These are investments with a time horizon of 50 years or more. It is precisely this long-term perspective that makes them attractive to institutional investors,» Deplazes said.

District heating instead of natural gas

One key area of focus is replacing oil and gas heating systems with district heating networks.

Energie 360° currently operates or is developing around 30 energy networks across Switzerland, most of them in the greater Zurich area. The heat is sourced almost entirely from renewable sources, including lakes, waste incineration plants and data centers.

«A data center is ultimately nothing more than a giant refrigerator,» Deplazes said. «The waste heat it generates is far too valuable to simply release unused into the environment.»

AI makes waste heat valuable

The artificial intelligence boom is driving demand for data centers worldwide, increasing the potential to use their waste heat for heating purposes.

Energie 360° is currently developing several projects that will use waste heat from data centers to provide heating for entire municipalities, including Volketswil and Dielsdorf.

«On this scale, it is unique in Switzerland,» Deplazes said.

The advantage is significant: While lake water is only a few degrees above freezing, data centers continuously supply water at around 30 degrees Celsius. This substantially reduces the electricity required to operate heat pumps.

«It would be irresponsible not to make systematic use of this potential,» Deplazes said.

Smarter power grids instead of grid expansion

When it comes to electric mobility, Deplazes also sees the challenge as less about capacity and more about intelligent management.

Many observers fear that Switzerland’s power grid will be unable to handle the growing electricity demand from electric vehicles.

«We need to shift loads intelligently,» he said.

Vehicles should be charged when sufficient electricity is available or when electricity prices are low. The same principle applies to heat pumps and water heaters.

«If we use the infrastructure intelligently, we can reduce many demand peaks without massively expanding the grid,» he said.

Energie 360° is also increasingly deploying battery storage systems at fast-charging stations to absorb peak loads and reduce pressure on the power grid.

Sustainability loses its label

Deplazes has also observed a notable shift among investors.

While the ESG label was still a primary focus just a few years ago, investors today are more interested in specific projects.

«We hardly talk about sustainability anymore. We talk about renewable technologies and the transformation of the energy system.»

Accordingly, the green bond attracted interest from a broad range of investors, including pension funds, insurers, banks and asset managers.

An attractive asset class

Deplazes expects capital requirements to continue rising in the coming years.

The energy transition will require billions in investment in electricity generation, heating systems, charging infrastructure and power grids.

«The need for investment in renewable energy is enormous,» he emphasized.

Long-term investors, in particular, could benefit from this development.

«We are talking about infrastructure with a lifespan of several decades. These are stable, predictable investments – and that is precisely what many institutional investors are looking for today,» Deplazes said.