RWE to Invest €50 B to Reach 50 GW RE Capacity by 2030

Budget reactions

“Greener, bigger, more valuable – that is RWE in 2030. For the first time, the company is providing details of what it will look like by the end of the decade,” states Germany’s largest power producer.

With its new strategy ‘Growing Green’, RWE will invest a significant sum, worth €50 billion, in its core business by 2030. That means an average of €5 billion gross each year for offshore and onshore wind, solar, batteries, flexible generation and hydrogen. The company is expanding its portfolio by 25 gigawatts net to 50 gigawatts (GW) in the markets of Europe, North America, and the Asia-Pacific Region.

Net capacity is to be added at an accelerated pace: Previously, RWE aimed to increase its total capacity by an average of 1.5 GW per year. In future, this figure is to average 2.5 GW per year – an increase of 70%. This also includes green hydrogen: By the end of the decade, RWE aims to build up its own net 2 GW of electrolyser capacity.

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As a consequence, adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) in the core business will increase substantially, to a planned €5 billion by 2030, likely more than twice the figure for the current fiscal year, says the company.

Michael Müller, Chief Financial Officer of RWE AG, comments: “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 programme adds value and is sustainable.”

He continues: “We also want our shareholders to benefit from the growth in our earnings. For fiscal 2021, the company plans to increase the dividend to 90 euro cents per share. We intend to keep our dividend at a floor of 90 euro cents per share in the coming years. In the long-term, we aim for a pay-out ratio to our shareholders of 50% to 60% of adjusted net income.”

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RWE intends to triple its offshore wind capacity from 2.4 GW to 8 GW by 2030. For onshore wind and solar RWE is planning to expand 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 in North America. Solar capacity is to be increased from less than 1 GW to 8 GW. As for the battery storage business, the company is involved in projects representing an installed battery capacity of more than 0.6 GW, and this figure is planned to grow to 3 GW by 2030.