German energy company RWE announced it will reduce its planned investment in clean energy by €10 billion through 2030, citing stricter risk management protocols and higher return expectations. The company stated that it now plans to allocate €35 billion in net investments for the period from 2025 to 2030, a reduction from its previous projections.
RWE’s decision comes as it contends with “regulatory uncertainties, supply chain constraints, geopolitical risks, and rising interest rates,” all of which have impacted its long-term strategy for renewable energy projects. The company emphasized that investments in new wind and solar farms, energy storage, electrolysers, and flexible power plants require stable, predictable conditions over decades to ensure viability.
As part of the shift, RWE has increased its required rate of return on new projects, raising the target from an average of 8% to more than 8.5%.
Markus Krebber, CEO of RWE, explained the decision, stating, “Our construction projects, totaling more than 12 gigawatts, are progressing as planned. Given higher uncertainties in the investment environment, we have raised the requirements for future investments. As a result of stricter risk management and higher return expectations, we will invest less than previously planned through to 2030.”
Despite the reduction in planned investment, RWE reaffirmed its financial targets, which include adjusted earnings per share of €4 by 2030 and an annual increase in dividends by 5% to 10%.
RWE’s offshore wind segment saw a slight decline in adjusted EBITDA for fiscal year 2024, dropping to €1.6 billion from €1.7 billion in 2023. The decline was attributed to lower prices for forward electricity sales, for which the company does not receive long-term compensation, along with increased maintenance costs for offshore wind assets.
In contrast, RWE’s onshore wind and solar business performed strongly, with adjusted EBITDA increasing to €1.5 billion in 2024, up from €1.2 billion the previous year. This improvement was primarily driven by the commissioning of new wind and solar farms.
The adjustments reflect the growing challenges in global energy markets, but RWE remains committed to its long-term goals within the clean energy transition.
