Monday 15th November 2021
Billions in investments planned
RWE is pumping billions into greening faster
The energy supplier RWE wants to significantly increase its production capacities for renewable energies by the end of the decade. The group lures investors with the fact that the current dividend should be the lower limit for future distributions.
With investments worth billions, the energy group RWE is pushing the pace in the expansion of renewable energies. By 2030, the Dax group wants to invest a total of 50 billion euros in its core business, which includes electricity generation from renewable energies and gas as well as energy trading. The goal is to increase the generation capacity from currently 25 to 50 gigawatts in 2030, said RWE boss Markus Krebber.
The rate of expansion is to be increased significantly for this. If the company wanted to increase the total output per year by an average of 1.5 gigawatts, in the future it should be an average of 2.5 gigawatts per year. The new growth strategy is called “Growing Green” (roughly: “Growing Green”).
Among other things, RWE wants to increase its capacity for electricity generation at sea from the current 2.4 to 8 gigawatts by 2030. An expansion from 7 to 20 gigawatts is planned for onshore wind turbines and solar systems. The group also wants to grow in battery storage, where the capacity is to increase to 3 gigawatts.
Second largest gas power plant fleet in Europe
RWE is currently involved in projects with a power line of 0.6 gigawatts. RWE continues to rely on the operation of gas-fired power plants that can produce electricity quickly if necessary. RWE currently has around 14 gigawatts of installed capacity, the second largest gas-fired power plant fleet in Europe, it said. Further systems with a total of at least 2 gigawatts of capacity are to be added by 2030.
The company emphasized that the new facilities should be provided “with a clear decarbonisation path”. A timetable is also being developed for all existing systems in order to convert them “green”. That means, for example, preparing them for the operation of hydrogen produced from renewable energies, said Krebber.
RWE also wants to expand trading in green energy sources. The company announced that it intends to develop new business opportunities in hydrogen and ammonia imports for industry in Europe.
The expansion should ensure that the adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in the core business grow by nine percent annually. “In 2030 it should be 5 billion euros,” said RWE, probably more than twice as much as in the current financial year 2021. RWE’s earnings situation has also developed positively in the short term, it said. The company raised its forecast for 2022. RWE confirmed its dividend target of 90 cents per share for 2021. This should be the lower limit in the coming years, the group promised. Shareholder representatives welcomed the announcements.