RWE chief financial officer Michael Müller has criticised the UK government’s £900 million budget for its seventh offshore wind allocation round, calling the amount “incomprehensible and disappointing” in comments published after the company reported third-quarter results.
Müller said the budget is “too low” and would “enable only a fraction of the eligible projects,” adding that the funding level falls short of what is required to accelerate deployment. “It is far from sufficient to realise the urgently needed expansion of new offshore wind capacity to the extent required,” he said.
He noted that the UK government could still expand the budget after bids are submitted. “This would give it the opportunity to mobilise massive investment in the UK energy sector, which could both strengthen energy supply and stimulate economic growth,” Müller added.
RWE has more than 10 GW of offshore wind capacity that could be entered into the round, though analysts estimate that only 5–6 GW may ultimately secure support under the current funding level.
The company reported adjusted EBITDA from offshore wind of €915 million for the first nine months of the year, down from just over €1 billion, which it attributed to weaker wind conditions across Europe.
