RWE invests heavily in expanding its renewables portfolio
achieves strong earnings in 2024
London, March 25, 2025, (Oilandgaspress) ––RWE Group earnings exceeded expectations, with adjusted EBITDA of €5.7 billion and adjusted net income of €2.3 billion. The company continued to expand its portfolio, investing a total of €10 billion net in offshore and onshore wind farms, solar farms, battery storage systems and electrolysers. New plants with a total capacity of around 2 gigawatts (GW) were commissioned in 2024. The expansion is also reflected in the company’s electricity generation – at almost 50 terawatt hours, electricity production from renewables reached a new all-time high. During the same period, CO2 emissions from electricity generation declined significantly again, by 13%.
A significant increase in global electricity demand is expected, in particular due to further electrification and artificial intelligence. RWE is perfectly positioned to address this demand with its integrated portfolio of renewables, battery storage and flexible generation, as well as a broad project pipeline of possible new builds.
Investments in new wind and solar farms, energy storage, electrolysers or flexible power plants are made over decades and therefore require stable, reliable framework conditions. The company is responding to regulatory uncertainties, constraints in the supply chain, geopolitical risks and higher interest rates. Accordingly, the required rate of return for new projects has been increased from an average of 8% to an average of more than 8.5%. As a result of stricter risk management and higher return expectations, RWE will invest less in the coming years than previously planned. A total of €35 billion net is now planned for the years from 2025 to 2030, about €10 billion net less than previously planned.
In November, RWE announced that it was delaying investments due to greater risks for offshore wind projects in the US and a slower ramp-up of the European hydrogen economy. The funds saved are being used for a share buyback programme of up to €1.5 billion, to be completed by the second quarter of 2026.
Highlights:
Strong group earnings for fiscal 2024 – adjusted EBITDA of €5.7 billion higher than expected, dividend proposal of €1.10 per share for fiscal 2024 confirmed
Net investments of €10 billion in expanding the generation portfolio; currently about 150 projects with a total capacity of 12.5 gigawatts under construction
Share of electricity production from renewable sources increased to more than 40%, CO2 emissions reduced by a further 13%
Increase of return requirements for new projects to an average of more than 8.5% – investment programme to 2030 reduced by €10 billion net
Mid- and long-term earnings per share targets unchanged, dividend for 2025 to increase by a further €0.10 to €1.20 per share
Information Source: Read More
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