RWE cuts green energy investments by $11 B
Germany’s RWE is cutting $11 B in green energy investments due to policy uncertainties, rising costs, and market risks, impacting future projects.
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Germany: Germany’s largest utility, RWE, is scaling back its green energy investments by $11 B (€10 B) due to regulatory uncertainties, supply chain constraints, geopolitical risks, and rising interest rates.
Despite ongoing work on over 12 GW of renewable energy projects, RWE is tightening risk management and raising return expectations. The company increased its required rate of return for new projects from 8 % to over 8.5 %. As a result, RWE will now invest $38.1 B (€35 B) from 2025 to 2030—$11 B less than initially planned.
CEO Markus Krebber cited a challenging investment environment, emphasizing the need for stricter financial discipline. In November, RWE warned that the U.S. election results posed risks to offshore wind projects, including its venture off the U.S. East Coast, which faces permitting delays.
The company also noted slower-than-expected progress in Europe’s hydrogen sector, which may push back its electrolyser expansion goals. However, RWE recently secured a 15-year deal to supply green hydrogen to TotalEnergies starting in 2030, marking one of the largest agreements of its kind.
While still committed to renewable energy, RWE is adapting to economic and regulatory challenges, adjusting its investment strategy accordingly.
Source: oilprice.com
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