RWE unveils €50 billion investment plans

4C Offshore | Tom Russell
By: 16/11/2021 RWE

RWE has unveiled its new strategy ‘Growing Green’, which includes investing €50 billion gross in its core business. That consists of €5 billion gross each year for offshore and onshore wind, solar, batteries, flexible generation and hydrogen. The company aims to expand its portfolio by 25 GW net, to 50 GW, in Europe, North America, and the Asia-Pacific Region.

Previously, RWE aimed to increase its total capacity by an average of 1.5 GW per year. Going forward, this figure is to average 2.5 GW per year – an increase of 70%. This also includes green hydrogen: By the end of the decade, RWE aims to build up its own net 2 GW of electrolyser capacity.

By 2030, RWE intends to triple its offshore wind capacity from 2.4 GW to 8 GW. These activities are focused on Europe as well as North America and the Asian markets, where the company works together with partners. For onshore wind and solar RWE is expanding its installed generation capacity from 7 GW to 20 GW; the emphasis here is split roughly fifty-fifty between the two, in both Europe and in North America. Solar capacity is to be increased from less than 1 GW to 8 GW. The battery storage business is also clearly focused on growth. The company is already involved in projects representing an installed battery capacity of more than 0.6 GW, and this figure is to grow to 3 GW by 2030.

RWE is also targeting growth opportunities for flexible electricity supply in its traditional markets in particular, i.e. in Germany, the United Kingdom and the Benelux countries, and will build flexible generation capacities. With an installed capacity of 14 GW, RWE is currently operating the second-largest gas-fired power station fleet in Europe. It has plans for additional plants with a generation capacity of at least 2 GW, which will have a clear decarbonisation roadmap. Furthermore, a roadmap for “green conversion” will also be developed for all existing power stations.

RWE further aims to expand its trading in green energy sources and its range of tailored energy solutions for large customers. The company also plans to open up new business opportunities in the areas of hydrogen and ammonia importing, in order to supply industry in Europe.

Michael Müller, Chief Financial Officer of RWE AG, commented: “Our new strategy not only paints a clear picture of how our company will develop between now and 2030; it also shows that we are financially strong and will be financing our green growth with green funds. Our growth programme adds value and is sustainable.” He continues: “We also want our shareholders to benefit from the growth in our earnings. For fiscal 2021, the company plans to increase the dividend to 90 euro cents per share. We intend to keep our dividend at a floor of 90 euro cents per share in the coming years. In the long-term, we aim for a pay-out ratio to our shareholders of 50% to 60% of adjusted net income.”

Markus Krebber, CEO RWE AG, said: “Our comprehensive strategic transformation has been successfully completed. We are in a great position to actively shape the key decade of the energy transition. With our investment and growth strategy ‘Growing Green’ we are strongly stepping up the pace and investing €50 billion gross through to 2030. This will help us to expand our powerful, green generation capacity to 50 gigawatts. As a result, adjusted EBITDA in our core business will increase by an average of 9% per year, with a target of €5 billion by 2030. Leading the way to a green energy world, we are fully committed to driving forward the climate-neutral transformation of industry and society, very much in the spirit of our purpose: Our energy for a sustainable life.”