RWE AG has announced plans to significantly expand its investment in wind energy, despite the challenges facing the wider sector, including rising interest rates and inflation. During its recent Capital Markets Day in London, RWE revealed its commitment to invest €55 billion ($60.4 billion) in green technologies by 2030.
A substantial part of this investment, around 35%, will go into offshore wind projects, and another 40% will go into onshore wind and solar energy. While the wind industry has encountered obstacles such as rising costs and supply chain bottlenecks globally, RWE clarified that its offshore expansion has already been secured through specific projects.
CEO Markus Krebber assured reporters that the economic difficulties facing the sector have not affected any of RWE’s projects. The company has proactively protected itself against potential risks in the supply chain. This announcement sparked a positive market response: RWE shares rose 2.7%, reaching their highest point in three months.
Bernstein analyst Deepa Venkateswaran said RWE’s commitment to renewable energy investments provides evidence of sustained growth in the renewable energy sector, offering attractive returns. This strategy aligns with a broader trend among global companies as they reallocate spending toward low-carbon technologies in preparation for a low-carbon future.
RWE’s investment target of €55 billion represents a substantial 10% increase compared to its estimate two years ago. The company aims to increase offshore wind capacity to 10 gigawatts by the end of the decade, a significant jump from the current 3.3 gigawatts. Additionally, RWE plans to increase onshore wind capacity to 14 gigawatts, exceeding the current level by more than 60%.
To further diversify its renewable energy portfolio, RWE aims to quadruple its investment in solar energy from current capacity to 16 gigawatts by 2030. In line with the growing importance of energy storage, the company also aims to double the capacity of its batteries to 6 gigawatts in the future. same term.
Geographically, RWE has allocated €20 billion of its financing to the United States, €11 billion to Germany and €8 billion to the United Kingdom. The company predicts annual dividend growth of 5-10% until 2030, with a target of €1.10 per share for next year. In terms of adjusted earnings before interest, taxes, depreciation and amortization, RWE expects substantial growth to more than €9 billion by 2030, compared to a previous estimate of €5 billion.
Frequently asked questions (FAQ)
Q: What percentage of RWE’s investment will go into offshore wind projects?
A: Around 35% of RWE’s €55 billion investment will be dedicated to offshore wind projects.
Q: Has RWE faced any financial difficulties that affect its projects?
RWE has announced that none of its projects have been affected by financial difficulties, as the company has proactively protected itself against risks in the supply chain.
Q: What is RWE’s plan for onshore wind capacity?
RWE intends to increase its onshore wind capacity to 14 gigawatts, more than 60% more than the current level.
Q: How does RWE plan to boost its investment in solar energy?
RWE aims to quadruple its solar energy capacity, from current capacity to 16 gigawatts by 2030.
Q: Which geographic regions will RWE dedicate its funding to?
RWE has allocated €20 billion for the United States, €11 billion for Germany and €8 billion for the United Kingdom in its investment plan.