The Essen-based energy company RWE is scaling back its investments in the renewable energies segment. By 2030, €10 billion less is to be spent.
RWE says it is responding to regulatory uncertainties, bottlenecks in the supply chain, geopolitical risks and higher interest rates. On the one hand, the return requirement for new projects will be increased from the previous average of 8% to 8.5%. In addition, planned investments in new wind and solar parks, energy storage facilities, electrolysers and power plants up to 2030 will be reduced by €10 billion to €35 billion.
RWE had already announced delays to investments in November in view of the greater risks for offshore wind projects in the USA and a slower ramp-up of the European hydrogen economy. The funds saved will instead flow into a share buyback program of up to €1.5 billion, which is to be completed in the second quarter of 2026.
RWE can look back on a successful 2024 financial year. Group earnings exceeded expectations with adjusted EBITDA of €5.7 billion and adjusted net income of €2.3 billion. The company invested €10 billion in new plants and commissioned a total capacity of around 2 GW. At just under 50 TWh, electricity production from renewable energies reached a new all-time high. In the same period, CO2 emissions once again fell significantly by 13%.
Adjusted EBITDA in the offshore wind segment amounted to €1.6 billion, compared to €1.7 billion in the previous year. One reason for the expected decline in earnings is that RWE realized lower prices than in 2023 for the forward sale of electricity volumes for which the company does not receive long-term agreed remuneration. In addition, there was an increase in expenses for the repair and maintenance of the plants.
