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(Bloomberg) — German energy company RWE AG said it will cut €10 billion ($10.9 billion) from its planned spending on green technologies by the end of the decade as its projects face higher investment risks, particularly in the US.
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RWE now expects €35 billion in net new spending from 2025 to 2030. The company said it’s responding to “regulatory uncertainties, constraints in the supply chain, geopolitical risks and higher interest rates,” which have raised the required rate of return for new projects.
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“Given higher uncertainties in the investment environment, we have raised the requirements for future investments,” Chief Executive Officer Markus Krebber said in a statement alongside RWE’s earnings report.
RWE is one of the biggest renewable energy companies in the US since completing its acquisition of Con Edison in 2023. Late last year, it warned it may have to delay global green investments given that risks to such projects in the US have increased after President Donald Trump’s election.
It opted instead for a €1.5 billion buyback, and signaled in its annual report published Thursday that it was keeping the option open for further share purchases.
The company said the remaining investment funds will be used “primarily” for wind power, solar and battery projects in Europe and the US, with €7 billion to be spent this year, down from €10 billion in 2024.
This month, RWE announced it was letting go of offshore wind employees in the US — a sector Trump has been particularly critical of, halting the sale of new leases and project permitting on his first day in office. For now, the company said it plans to continue all three of its US-based offshore wind projects if the framework conditions allow it, but that it’s keeping spending for these projects at a minimum.
RWE also said it expects adjusted earnings before interest, taxes, depreciation and amortization to be lower this year, in the range of €4.55 billion to €5.15 billion. In fiscal 2024, the company reached the upper end of its forecast range with earnings of €5.7 billion.
(Updates with additional details from annual report throughout.)
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