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German energy heavyweights announce major deal

4C Offshore | Bridget Randall-Smith
By: Bridget Randall-Smith 12/03/2018 E.ON
German utility companies E.ON and RWE have announced a complex asset swap codenamed "Live wire" concerning RWE's subsidiary company innogy SE.

The rival companies have agreed on a series of transactions which will see E.ON acquire RWE’s 76.8% stake in innogy in return for granting RWE an effective participation of 16.67% in E.ON SE.

Through the agreement the renewable energy businesses of both E.ON and RWE will then be brought together under the umbrella of RWE. This will leave E.ON to 'become a focused customer-oriented energy company concentrating on energy networks and customer solutions.'

E.ON will also transfer to RWE  the entire innogy renewables business, the innogy gas storage business and innogy’s stakes in the Austrian energy supplier Kelag. Furthermore RWE would receive the minority interests currently held by E.ON’s subsidiary PreussenElektra in the RWE-operated nuclear power plants Emsland and Gundremmingen.

E.ON and Innogy are both important players in the European offshore wind industry. E.ON is currently developing the 400MW Rampion offshore wind farm due to be commissioned this year and the 385MW Arkona project located northeast of the island of Rügen with installation of the SWT-6.0-154 turbines due to start in the coming months.

innogy also has a growing portfolio featuring the recently renamed Sofia project in the Dogger Bank zone and the 860MW Triton Knoll offshore wind farm which was awarded a Contract for Difference (CfD) in 2017 with a strike price of £74.75/MWh (approx.€83.45/MWh).

According to E.ON, the conclusion of the swap requires the approval of the boards of E.ON and RWE with the agreement due to be signed shortly afterwards.

Fore more information, please follow the links provided. Alternatively,
click here to 4C Offshore's interactive map of offshore wind farms.

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