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Image credit: RWE
In a bold strategic move, RWE, the renowned German energy conglomerate, has officially elevated its global green energy investment objective to an impressive €55 billion for the remaining years of this decade, culminating in 2030. This monumental decision aligns with RWE's steadfast commitment to expanding its renewable energy capacity, soaring to a remarkable 65GW by the end of this transformative decade from the approximately 35GW it currently stands at.
Fueling this remarkable surge in green energy aspirations is RWE's notable financial prowess, bolstered by earnings growth. This newfound financial headroom paves the way for an accelerated journey towards realising their green energy ambitions throughout the 2020s.
During a pivotal presentation of its updated investment strategy in London, RWE revealed its substantial investments, totalling €20 billion in renewables and clean energy technologies since 2021. However, the energy giant is poised to propel these figures even further, expecting to exceed €9 billion in earnings by the year 2030.
A substantial portion of the formidable €55 billion allocation is earmarked for Europe, with Germany securing a prominent share of €11 billion scheduled for investment from 2024 to 2030, complemented by a noteworthy €8 billion allocation designated for the United Kingdom. Notably, the United States also commands a prominent position in RWE's global vision, with a staggering €20 billion reserved for future clean energy investments spanning this decade.
Diversity is the hallmark of RWE's investment strategy, with the allocation thoughtfully distributed across various technologies. A substantial 40% is directed towards nurturing their onshore wind and solar ventures, with an ambitious goal of expanding onshore wind capacity to an impressive 14GW by 2030 while concurrently advancing solar capacity to a commendable 16GW.
Furthermore, RWE's commitment extends offshore, with an audacious plan to amplify offshore wind capacity to an awe-inspiring 10GW in 2030, a significant surge from its current standing at 3.3GW. Equally, 25% of their investment reservoir is designated for developing battery storage, flexible generation, and pioneering hydrogen projects.
The future portends an ambitious endeavour for RWE, with a resolute target of 6GW in battery storage capacity by 2030, a monumental leap from its current 500MW. Additionally, the company aspires to establish at least 3GW of "hydrogen-ready" gas-fired power plans and an impressive 2GW of green hydrogen production capacity via cutting-edge electrolysers, all by the same milestone year.
"Thanks to our significant financial headroom, our attractive project pipeline and our extensive expertise, we are in an excellent position to continue to accelerate our transformation, even in the current challenging environment," said RWE's CEO Markus Krebber.
"In the coming years up to 2030, we want to invest €55bn worldwide in renewable energy, batteries, flexible generation and hydrogen projects. We are growing green and increasing our earnings while decarbonising our portfolio even faster - in line with the 1.5C pathway and our goal of becoming net zero by 2040."
RWE has witnessed a remarkable surge in its global green energy portfolio in recent years, ascending from 9GW to a commendable 35GW. The company boasts an impressive roster of over 100 projects under construction across ten countries, contributing an additional 7.8 GW to its burgeoning capacity.
The firm said it had an "extensive" pipeline of planned projects totalling more than 100GW of capacity, which it said would allow it to prioritise investments within its pipeline to secure "the most attractive risk-return profile".
Michael Müller, chief financial officer at the company, said he expected net income to grow by an average of 12 per cent in the 2020s, amounting to €3 billion in 2030, and double its shareholder dividend payouts to 10 per cent each year.
"Our ambitious Growing Green targets reflect RWE's financial strength and emphasise once again that we are growing profitably," he said. "Our investment and growth programme is fully financed until 2030. We cover around 80 per cent of our financial requirements from the strong cash flow of our profitable operating business. Thanks to our attractive investment grade rating, we also have access to the debt capital market at all times."
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