RWE plans €1bn investment to drive business in renewable energy sector

10 March 2015 (Last Updated March 10th, 2015 18:30)

RWE plans to invest nearly €1bn between 2015 and 2017 to grow its renewable energy portfolio.

RWE plans to invest nearly €1bn between 2015 and 2017 to grow its renewable energy portfolio.

The investment by the German utility-developer will be majorly earmarked for offshore wind developments.

RWE chief executive Peter Terium was cited by reNEWS as saying that the renewable sector is "a major technology whose high load factor helps ensure grid stability".

As well as offshore wind, the company will also vouch for onshore wind developments especially across Germany, the UK, the Netherlands, and Poland.

"The crisis in conventional electricity generation will continue to have a significant impact on RWE’s earnings."

The firm revealed its next year plans along with its 2014 fiscal results. RWE had a net profit of €1.7bn last year, it said.

Though it met its 2014 targets, RWE wants to be more cautious with its expenses in the future, since it had suffered losses with extra expenses at a German and a UK offshore-wind projects.

The firm spent €1bn for the renewable energy sector in 2014 alone.

RWE, however, expects further declines to profitability from its conventional power generating capacity in the current year.

Peter Terium was quoted by The Wall Street Journal as saying: "The crisis in conventional electricity generation will continue to have a significant impact on RWE’s earnings…therefore we will probably not succeed in keeping the operating result at the level recorded in 2014."