September 08, 2008

RWE to invest EUR 1 billion annually in renewable from 2008

It is reported that Germany's largest power producer RWE plans to invest at least EUR 1 billion annually from 2008 in renewable energy, mainly in wind power, as it seeks to reduce emissions of carbon dioxide.

Mr Juergen Grossman CEO of RWE AG during the company's presentation of its new renewable energy division said that “We will massively expand power generation on the basis of renewable energies.” He added that the EUR 1 billion is rather a lower limit to the company's future investments in renewable.

Mr Grossman said that its new division, named RWE Innogy will start at the beginning of 2008 with an initial generation capacity of some 1,500 MW and it will be headed by Mr Fritz Vahrenholt, as previously speculated in German media reports. He added that “The unit is important for low carbon supply in Germany and Europe, for our public acceptance and not least for the economic future and growth strategy of our group."

The renewable unit will have the same profitability requirements as the other operations in the group and will focus on onshore and offshore wind power projects. Mr Grossmann said that "The business model includes the planning, construction and operation of plants for renewable power generation and energy recovery."

RWE is Europe's biggest emitter of carbon dioxide, which causes global warming, and is facing increasing costs for its emissions as governments cut the supply of permits allowing companies to emit the greenhouse gas.