German Energy Major RWE Invests USD 2 Billion In Renewables, Sees Profits In H1

In 2021, the German energy giant RWE onshore renewables segment underwent a significant overhaul. The division returns to profitability in the first half of 2022 after a weak first half of the 2021 result. The company claims that it invested €2 billion (US$2.04 billion) in the growth of its green portfolio during the first half of the year.

The onshore renewables unit in Essen, RWE saw its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) soar to €491 million (US$499 million) in first half 2022, a notable improvement from the €42 million loss it incurred in first half 2021, which it attributed to extreme weather events in Texas.

While the company’s income from coal decreased, its other renewable units did well, and it still managed to earn a sizable profit.

RWE’s adjusted EBITDA for its “Core Business”—which excludes its coal and nuclear activities, which generated more than €500 million in combined revenue in first half—was €2,357 million (US$2,399 million), bringing the group’s EBITDA to €2,858 million.

RWE invested roughly €2 billion in its renewables portfolio in the first half of the year and anticipates that amount to increase to €5 billion by the end of the year.

According to the company, it started up new wind farms, solar projects, and battery energy storage systems (BESS) with a combined net installed capacity of roughly 1.2GW. It also added that the additional capacity and better wind conditions allowed it to generate 20% more power in first half than it did in the same period last year.

According to Markus Krebber, CEO of RWE, “this year alone we are investing more than €5 billion in extending our green portfolio, which is around 30% more than originally projected.” “We are putting money into solar, batteries, onshore and offshore wind, and expanding the hydrogen economy.”

The company claimed it now has 4.8 GW of projects under construction and plans to buy the 1.4 GW Magnum power station in the Netherlands, which is prepared to run on hydrogen.

RWE increased its outlook for 2022 at the end of July, ahead of its first half earnings results, noting a “strong profitability trend in the worldwide core business.” As of right now, it anticipates that its core business will complete the year with adjusted net income of between €2.1 billion and €2.6 billion and adjusted EBITDA of between €4.3 billion and €4.8 billion.