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RWE backs wind energy with green plan

Tan KW
Publish date: Thu, 30 Nov 2023, 11:49 AM
Tan KW
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LONDON: German utility RWE AG plans to expand its investment in wind energy even as the broader sector struggles with soaring interest rates and inflation.

The company expects to invest €55bil (US$60.4bil) overall on green technologies by 2030, it said during its Capital Markets Day, held here. About 35% of the amount will be devoted to offshore wind and 40% to onshore wind and solar.

The wind industry worldwide has faced challenges including rising costs and supply chain bottlenecks.

RWE said its offshore expansion has already been secured with specific projects.

“We are implementing our offshore projects as planned,” chief executive officer Markus Krebber told reporters.

“None of the projects are affected by economic difficulties,” he said, adding that the company has protected itself against risks in the supply chain. RWE shares traded 2.7% higher. The stock earlier rose as much as 4.1%, the most in three months.

The company’s announcement Tuesday provides “evidence of sustained renewables growth at attractive returns,” Bernstein analyst Deepa Venkateswaran said in a research note.

Across the globe, companies are shifting their spending strategies to prepare for the shift to a low-carbon future.

RWE’s expected 55bil investment marked a 10% increase from its estimate two years ago.

 - Bloomberg

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