E.ON to split into two entities for renewable and traditional energy

30 November 2014 (Last Updated November 30th, 2014 18:30)

German utility firm E.ON is to divide its business into two separate entities, with one focusing on renewable energy and the new firm continuing with conventional sources.

German utility firm E.ON is to split into two separate entities, with one focusing on renewable energy and the new firm continuing with conventional sources.

Dramatically altered global energy markets, technical innovation and more diverse customer expectations have been cited by the firm as the reasons behind the decision.

E.ON CEO Johannes Teyssen said: "E.ON will tap the growth potential created by the transformation of the energy world.

"Alongside it we’re going to create a solid, independent company that will safeguard security of supply for the transformation.

"E.ON will tap the growth potential created by the transformation of the energy world."

"These two missions are so fundamentally different that two separate, distinctly focused companies offer the best prospects for the future."

The new entity will include E.ON’s conventional power-generation, global energy trading, exploration and production units. Preparatory steps for the new company’s public listing will be taken in 2015, the firm said.

The company intends to focus on three core businesses in the future, including renewables, distribution networks and customer solutions. It will raise its investments for 2015 by €0.5bn, compared with the planned 2015 capex of €4.3bn.

E.ON has also sold its 80% stake in two wind farms in the US for $650m to Canada-based Enbridge.

Both the 203MW Magic Valley 1 wind farm near Harligen in Texas and the 202MW Wildcat 1 near Elwood, Indiana, have been operational since 2012.

Energy