RWE to spend $57 billion in green energy by 2030

RWE outlines the biggest investment promotion in its history to invest 5 billion euros gross, 3 billion net annually by 2030.

RWE plans to invest 50 billion euros ($57 billion) by 2030 to increase its renewable energy capacity to 50 gigawatts, Germany’s largest electricity producer said in a strategy update ahead of its capital markets day on Monday. 

The investment plan, the largest in RWE’s 123-year history, will be funded by the company’s cash flows from operating activities, as the group aims to become one of the world’s largest renewables players. 

Marcus Kreber, who took over as RWE’s CEO in May, said in a statement, “Our comprehensive strategic transformation has been completed successfully. We are in a great position to actively shape the key decade of the energy transition”.

RWE shares traded 1% higher.

RWE said the total investment for offshore and onshore wind, solar, battery, flexible generation as well as hydrogen would average 5 billion euros over a decade, for which RWE has set a target of 2 GW in electrolyser capacity by 2030.

Asset rotation, which effectively means the sale of a stake in renewable assets to bring in external funds, will account for 40% of the amount, with the net cash investment RWE plans to spend €3 billion annually by 2030. 

The company said adjusted earnings before interest, taxes, depreciation and amortization in its core business, which excludes nuclear and coal, is expected to more than double resulting in 5 billion euros by 2030.

($1 = 0.8737 euros) 

Source: Reuters