RWE Reveals €55 bn Investment Plan Aiming to Propel Global Energy Transition

By Editor


RWE, a powerhouse in the energy sector, has announced an unprecedented surge in its commitment to the global energy transition with a mammoth investment plan of €55 billion dedicated to green technologies between 2024 and 2030. This substantial increase in investments is a testament to the company’s “Growing Green” program launched two years ago, aimed at propelling the energy transition and decarbonizing the energy system.

Markus Krebber, CEO of RWE AG, emphasized the company’s robust position, stating, “Thanks to our significant financial headroom, our attractive project pipeline, and our extensive expertise, we are in an excellent position to continue to accelerate our transformation, even in the current challenging environment.”

The investment strategy delineates an ambitious roadmap with a focus on renewable energy, batteries, flexible generation, and hydrogen projects. RWE aims to bolster its green portfolio to over 65 gigawatts (GW), a substantial increase from the current 35 GW achieved since 2021.

The company boasts an extensive project pipeline exceeding 100 GW across various technologies and markets, allowing it to cherry-pick investments with the most promising risk-return profiles. The bulk of RWE’s planned investments — 75 percent — will be channeled into renewables, alongside batteries, flexible generation, and hydrogen projects.

RWE’s investment drive primarily targets industrialized nations, focusing on core markets such as Germany, the USA, the United Kingdom, and selected countries in APAC like Australia, Japan, and Korea.

Europe emerges as a pivotal arena for RWE’s investments, with over half of the €55 billion earmarked for the region. In Germany alone, an approximate €11 billion will be invested, signifying a 20 percent increase compared to prior plans. The United Kingdom is also a significant focus, with around €8 billion slated for investments from 2024 to 2030.

Technology-wise, RWE intends to allocate 40 percent of the investment to expand its onshore wind and solar businesses. This expansion aims to grow onshore wind capacity from 8.6 GW to 14 GW and solar capacity from 3.9 GW to 16 GW by 2030.

Moreover, offshore wind projects account for 35 percent of the investment, with RWE’s offshore wind capacity set to soar from 3.3 GW to 10 GW by 2030, including specific projects like the Sofia project in the UK and the Thor project in Denmark.

Additionally, RWE plans to escalate its battery capacity from 0.5 GW to 6 GW by 2030, accompanied by the construction of hydrogen-ready gas-fired power plants and electrolyser capacity.

RWE anticipates robust earnings growth, with an average annual increase in adjusted EBITDA of 14 percent and adjusted net income growth of 12 percent annually throughout the decade, reaching over €9 billion and €3 billion, respectively, by 2030.

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