February 5, 2019 Read More →

Germany’s RWE has global plans for renewable energy business

S&P Global Market Intelligence ($):

The newly formed RWE AG will mainly invest the billions it plans to spend annually on renewables outside of its home market of Germany after its asset swap with rival E.ON SE and subsidiary Innogy SE is completed later this year, the company’s chief executive said.

“You look where you earn the most money. At the moment, that is certainly not Germany,” Rolf Martin Schmitz, who has led the company since 2016, told an audience at the E-world power industry conference in Essen, Germany, on Feb. 4. “We will continue to invest globally.”

Under a €40 billion asset swap announced last year, RWE is set to become the third-largest renewable energy generator in Europe and second-largest player in the offshore wind sector by taking over all the renewables assets of E.ON and Innogy. In its new incarnation, the company plans to spend €1.5 billion per year to grow its portfolio by between 2 GW and 3 GW of new wind and solar photovoltaic capacity.

But Germany, where RWE operates the largest fleet of coal-fired power plants, won’t receive a majority of the planned investments, according to Schmitz. “There is just no space or market for it,” he said.

Although solar PV additions totaled approximately 3 GW in Germany last year, the onshore wind sector has collapsed around the introduction of competitive auctions and a slowdown in approvals. The most recent tender in October 2018 saw prices tick up as interest from developers waned, although the government has also introduced special auctions for 8 GW of extra renewables capacity to be tendered between 2019 and 2021.

More ($): RWE renewables focus will lie outside Germany after asset swap, CEO says

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