RWE says 42% of electricity generation came from renewable energy

By Editor


Energy major RWE today revealed that 42 percent of its electricity generation came from renewable sources during the first quarter of 2024.

RWE achieved significant increases in earnings in both Offshore Wind and Onshore Wind/Solar.

“In the first three months of the year, 42 percent of our electricity generation came from renewable sources. Currently, we have projects with a total capacity of 8.3 gigawatts under construction,” Michael Muller, Chief Financial Officer of RWE AG, said.

RWE has posted adjusted EBITDA of €1.7 billion and adjusted net income of €0.8 billion in the first quarter of 2024. The reduction in earnings is mainly due to lower earnings in the Flexible Generation segment.

RWE has made an investment of €2.3 billion in the first quarter of 2024. RWE’s €1 billion investment was for the acquisition of three offshore wind development projects from Vattenfall off the coast of the UK.

In addition, RWE invested more than twice as much in the construction of new wind and solar power plants in the first quarter as in the same period last year. Proceeds from the sale of a 49 percent stake in the Dogger Bank South offshore wind projects in the UK to Masdar had a counteracting effect.

RWE is building plants with a total capacity of 8.3 gigawatts (GW). These include the offshore wind projects Sofia off the UK coast with 1.4 GW and Thor in Denmark with 1.1 GW.

RWE is also driving forward the expansion of onshore wind and solar energy and the construction of new batteries with more than 100 projects under construction in Europe and the US.

Business development in the first quarter of 2024 by segment

Offshore Wind: Adjusted EBITDA in the Offshore Wind segment amounted to €548 million, compared to €473 million in the first quarter of 2023. The increase in earnings is mainly due to improved wind conditions. In the same period of the previous year, these were below the assumed average.

Onshore Wind/Solar: The Onshore Wind/Solar segment recorded adjusted EBITDA of €341 million compared to €247 million in the first quarter of 2023. The positive earnings development is mainly due to the commissioning of new capacity and the recognition of the business activities of Con Edison Clean Energy Businesses in the US for the full three months. Moreover, wind conditions at the European onshore sites improved marginally overall, which also had a positive effect.

Flexible Generation: Adjusted EBITDA of the Flexible Generation segment decreased to €552 million in the first quarter of 2024 from €1,181 million in the prior-year period. The margins on electricity forward electricity sales and income from the short-term optimisation of power plant dispatch fell short of the exceptionally high level recorded last year.

As of 31 March 2024, RWE has debt of €11.2 billion. Due to the company’s significant growth investments, the leverage factor, i.e. the ratio of net debt to adjusted EBITDA, is likely to increase in 2024. However, it is expected to remain well below the upper limit of 3.0 that RWE has set for itself.


RWE says the outlook for earnings development in the current financial year is unchanged from March 2024.

RWE forecasted adjusted EBITDA within a range of €5.2 billion to €5.8 billion at the Capital Markets Day on 28 November 2023.

The company is maintaining this guidance, though RWE expects to close at the lower end of the forecast range. The reason for this is that electricity prices have dropped significantly since November 2023. RWE is expecting adjusted net income of €1.9 billion – €2.4 billion.

Baburajan Kizhakedath

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