“Our ‘Growing Green’ strategy is paying off - more than half of our adjusted EBITDA is already coming from our wind and solar energy business. Our power production from renewables reached a record level of 26 terawatt hours and accounted for 45 per cent of total generation. At the same time, we have significantly reduced our CO2 emissions.
We are continuing to invest billions of euros in the value-creating expansion of our geographically and technologically broadly diversified portfolio. At the same time, the demand for green electricity continues to rise. RWE is ideally positioned to continue to drive the energy transition both in Germany and internationally”, Markus Krebber, CEO of RWE AG said.
45% of generated power from renewables
In the first half of 2024, the company invested €4.5 billion net in new plants and made the final investment decision for the construction of further wind, battery and solar projects with a total capacity of 2.9 gigawatts (GW). These include the offshore wind projects Nordseecluster in Germany and OranjeWind in the Netherlands. A total of 10.2 GW of new capacity is currently under construction.
See also what EDP does: “Investment plan of 17 billion € in the energy transition by 2026”
Green electricity production reached a record level of 26 terawatt hours (TWh) in the first half of 2024. 45% of the power generated by RWE came from renewable sources. At the same time, RWE has further reduced its CO2 emissions significantly, by 27% compared to the first half of 2023.
Business development in the first half of 2024 by segment
Offshore Wind: Adjusted EBITDA in the Offshore Wind segment amounted to €828 million, compared to €762 million in the first half of 2023. The increase in earnings is mainly due to improved wind conditions compared to the previous year.
Onshore Wind/Solar: The Onshore Wind/Solar segment recorded adjusted EBITDA of €730 million compared to €519 million in the first half 2023. The positive earnings development is due to the commissioning of new capacity and the recognition of the business activities of Con Edison Clean Energy Businesses in the US for the full six months. In addition, RWE realised higher electricity prices than in 2023 – above all in the US – and benefited from more favourable weather conditions.
Flexible Generation: Adjusted EBITDA of the Flexible Generation segment decreased to €1,014 million in the first half of 2024 from €1,949 million in the prior-year period. The margins on electricity forward sales and income from the short-term optimisation of power plant dispatch fell short of the exceptionally high level recorded last year.
Supply & Trading: At €318 million, the segment's adjusted EBITDA was significantly below the previous year's figure of €799 million. Performance was below the extraordinarily high level of 2023.
As of fiscal 2024, RWE has pooled the lignite-fired power generation business and the nuclear decommissioning activities as ‘Phaseout Technologies’ and has been managing them based on adjusted cash flows. This business is no longer included in adjusted EBITDA, adjusted EBIT and adjusted net income. (hcn)
