Germany – RWE in 2030 will be greener, bigger, and more valuable. For the first time, the company is revealing specifics about how it will look by the end of the decade.
With its new ‘Growing Green’ strategy, RWE is accelerating its pace and investing €50 billion in its core business. This equates to an annual gross revenue of €5 billion for offshore and onshore wind, solar, batteries, flexible generation, and hydrogen. As a result, the company is increasing its portfolio by 25 gigatonnes net to 50 gigatonnes (GW) in the lucrative markets of Europe, North America, and the Asia-Pacific Region.
Net capacity will be added at a rapid pace: Previously, RWE planned to increase total capacity by 1.5 GW per year on average. In the future, this figure is expected to average 2.5 GW per year, representing a 70% increase. Green hydrogen is also included: RWE intends to build its own net 2 GW of electrolyzer capacity by the end of the decade.
As a result, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) in the core business will more than double to €5 billion by 2030, more than double the figure for the current fiscal year.
RWE’s earnings situation is also improving in the short term, prompting the company to raise its current forecast for fiscal 2022.
The vast majority of RWE’s investment program will be funded by its strong cash flows from operating activities. The company has plenty of financial headroom due to its excellent creditworthiness and low debt level.
Rapid and long-term expansion
RWE is already one of the world’s leading companies in renewable energy. As a result, it is only natural that renewables are one of the new strategy’s focal points: RWE plans to triple its offshore wind capacity by 2030, from 2.4 GW to 8 GW. These activities are concentrated in Europe, North America, and Asia, where the company collaborates with partners. RWE is increasing its installed generation capacity for onshore wind and solar from 7 GW to 20 GW, with a roughly 50/50 split in both Europe and North America. This will capitalize on the unique potentials of solar: capacity will be increased from less than 1 GW to 8 GW. The battery storage industry is also clearly focused on expansion. The company is already involved in projects with a total installed battery capacity of more than 0.6 GW, which is expected to increase to 3 GW by 2030.
RWE will capitalize on growth opportunities for flexible electricity supply in its traditional markets, namely Germany, the United Kingdom, and the Benelux countries, and will contribute to supply security by constructing flexible generation capacity. RWE currently operates Europe’s second-largest gas-fired power station fleet, with 14 GW of installed capacity. Additional plants with a generation capacity of at least 2 GW are planned, with a clear decarbonisation roadmap. In addition, a roadmap for “green conversion” of all existing power plants will be developed.
RWE will also significantly expand its green energy trading and its portfolio of tailored energy solutions for large customers. RWE is the go-to partner for industrial decarbonization because of its experience with its own transformation. In order to supply industry in Europe, the company also intends to open up new business opportunities in the areas of hydrogen and ammonia importation.