Power

RWE launches renewables growth strategy; €50 billion investment by 2030

RWE

RWE, a top German energy company, announced this Monday it is expanding its efforts in the renewable energies business. It is mounting a strategy by 2030 to increase its footprint substantially in renewables.

Firstly, to support its growth targets, the company will invest up to 50 billion euros by 2030. That means an investment of up to 5 billion euros each year for offshore and onshore wind, solar, batteries, flexible generation, and hydrogen.

As a result, RWE expects to grow its portfolio by 25 gigawatts net to 50 gigawatts by the end of the decade in the markets of 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.

However, it has now increased that target to an average of 2.5 GW per year; an increase of 70%. Consequently, the company’s core business’s adjusted EBITDA will increase substantially, to a planned €5 billion by 2030; likely more than twice the figure for the current fiscal year.

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RWE also to seek opportunities in hydrogen and ammonia

About the matter, 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 program adds value and is sustainable.”

He also remarked. “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.”

Moreover, RWE intends to tripe its offshore wind capacity by 2030, from 2.4 GW to 8 GW. For onshore wind and solar, RWE is expanding its installed generation capacity from 7 GW to 20 GW. Specifically for solar, the growth would be from less than 1 GW to 8GW; while installed battery capacity will grow from 0,6GW to 3GW by 2030.

Finally, the company will 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 hydrogen and ammonia importing to supply industry in Europe.

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