RWE To Double Green Energy Capacity With $57B Investment
Germany's largest power producer RWE has revealed its plans to invest $57 billion through 2030 to double its green energy capacity to 50 gigawatts (GW).
According to RWE’s plan, it will invest around $5.7 billion gross each year for offshore and onshore wind, solar, batteries, flexible generation, and hydrogen.
The goal of the investments is to expand its portfolio by 25 gigawatts net to 50 gigawatts in the markets of Europe, North America, and the Asia-Pacific region.
Net capacity will be increased at an accelerated pace. Previously, RWE aimed to increase its total capacity by an average of 1.5 GW per year. In the future, this figure is to average 2.5 GW per year – an increase of 70 percent. This also includes green hydrogen, and, by the end of the decade, RWE aims to build up its own net 2 GW of electrolyzer capacity.
“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,” Michael Müller, CFO of RWE, said.
“We also want our shareholders to benefit from the growth in our earnings. For fiscal 2021, the company plans to increase the dividend to $1.02 per share. We intend to keep our dividend at a floor of $1.02 per share in the coming years. In the long-term, we aim for a payout ratio to our shareholders of 50 to 60 percent of adjusted net income.”
Renewables are one of the focal points of the new strategy. 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 North America. This will take advantage of the particular potentials offered by 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.
Worth noting, RWE is currently operating the second-largest gas-fired power station fleet in Europe with an installed capacity of 14 GW. Additional plants with a generation capacity of at least 2 GW, which will have a clear decarbonization roadmap, are planned. Furthermore, a roadmap for green conversion will also be developed for all existing power stations.
“RWE can deliver what the green energy world needs – electricity from wind and sun, for which the demand is increasing more and more, storage systems and flexible generation capacity to secure supply, expertise and drive to ramp up the hydrogen economy, integrated customer solutions to supply industry with green energy, and a massive reduction in CO2 to contribute towards the achievement of the Paris Agreement targets,” Markus Krebber, CEO of RWE, stated.
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