RWE boosts green investments to €55 billion

German utility eyes renewables portfolio exceeding 65 GW under new investment plan covering 2024 to 2030

German utility RWE has increased its capital expenditure on green projects and now says it will invest €55 billion across renewable energy, batteries, flexible generation and hydrogen projects worldwide by 2030.

The company updated its "Growing Green" investment program, which was launched two years ago. The new strategy was presented at the company's Capital Markets Day in London on Tuesday. RWE, which aims to become a net zero emitter by 2040, said it had already invested €20 billion net since 2021 and would look to accelerate income from decarbonization operations.

Under the new plan, covering 2024 to 2030, RWE will invest €55 billion net worldwide to expand its green portfolio to more than 65 GW. The company currently has 100 projects totaling 7.8 GW under construction in 10 countries.

RWE intends to invest 40 percent of the planned €55 billion net in the expansion of the onshore wind and solar business. The installed capacity in the onshore wind sector will grow from 8.6 GW at present to 14 GW by 2030, with solar expanding from 3.9 GW to 16 GW.

Another 35 percent is earmarked for offshore wind projects, which will increase RWE's offshore wind capacity from 3.3 GW now to 10 GW by 2030. RWE said the expansion had already been secured with specific projects, all of which are set to be realized as planned. These include the 1.4 GW Sofia project in the UK and the 1.1 GW Thor project in Denmark, both of which are under construction.

The remaining 25 percent of investments have been set aside for battery projects, flexible generation and hydrogen. Battery capacity is set to increase from 0.5 GW to 6 GW by 2030. The company also said it had planned for construction of at least 3 GW of hydrogen-ready gas-fired power plants and 2 GW of electrolyzer capacity.

Markus Krebber, CEO, said in a statement: "We are in an excellent position to continue to accelerate our transformation, even in the current challenging environment. In the coming years up to 2030, we want to invest €55 billion 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 1.5-degree pathway and our goal of becoming net-zero by 2040."

Michael Müller, CFO of RWE said: "Our investment and growth programme is fully financed until 2030. We cover around 80 percent of our financial requirements from the strong cash flow of our profitable operating business."