RWE Invests €8 Billion In Green Energy In Q1, 2023

German energy company–RWE is making swift progress in green energy as it expanded its green portfolio by 4.9 Gigawatt (GW) in the first quarter of 2023 alone. It was done through a massive investment of EUR 8 billion. The EUR 6.3 billion acquisition of Con Edison Clean Energy Businesses in the US represented the largest share of the investments.

RWE said it acquired a hydrogen-ready gas-fired power station in the Netherlands and took over British solar developer JBM Solar. It also invested strongly in new wind and solar facilities and commissioned other plants. As a result, compared to the first quarter of 2022, RWE’s green portfolio grew by an impressive 7 GW.

RWE said additional facilities with a capacity of 6.8 GW are currently under construction. The largest individual projects are 1.4 GW Sofia offshore wind farms on the United Kingdom (UK) coasts and 1GW of Thor offshore farm in Denmark. Onshore, too, RWE is pressing ahead on the expansion of wind power with more than 17 projects totaling 600 MW in Europe and the US.

Solar energy currently represents the largest share of new-build projects of RWE, at 2.7 GW. In addition, RWE is expanding its global battery storage portfolio, with projects totaling 900 MW under construction in Germany, the US, and the Netherlands.

Michael Müller, CFO of RWE, said, “The continuous construction of new renewable energy facilities and our acquisitions are paying off. In the first quarter of 2023, we generated 14% more green electricity than in the same period last year. And we have the financial resources to continue investing strongly in organic growth this year. Our project pipeline is well filled, and the forthcoming auctions open further attractive opportunities for us.”

In the first quarter of 2023, RWE achieved an adjusted EBITDA of EUR 2.8 billion. Earnings for the first three months are thus well up year on year. Its adjusted net income rose to €1.7 billion.

Regarding offshore wind, the adjusted EBITDA in the Offshore Wind segment was €473 million, compared to €420 million in the first quarter of 2022. RWE said that this increase in earnings is due to the commissioning of new capacities in the form of the Triton Knoll wind farm off the UK coast and Kaskasi off the island of Heligoland.