By Giulia Petroni
RWE AG on Monday outlined its investment and growth targets until the end of the decade, stepping up its development strategy for clean energy sources.
The German energy company said at its capital markets day that it aims to invest 50 billion euros ($57.2 billion) gross in its core business by 2030, or EUR5 billion on average every year, toward onshore and offshore wind, solar, batteries, flexible generation and hydrogen. Net cash investments would amount to EUR30 billion by 2030 or EUR3.5 billion a year.
The goal is to expand its green-energy generation capacity to 50 gigawatts from 25 gigawatts across Europe, North America and the Asia-Pacific region.
Specifically, the company said it intends to triple its offshore wind capacity to 8 gigawatts from 2.4 gigawatts in 2020 and expand its installed generation capacity for onshore wind and solar to 20 gigawatts from 7 GW in 2020.
RWE added that it plans to grow its installed battery capacity to 3 gigawatts by 2030 from over 600 megawatts, and build up its own net 2 gigawatts of electrolyser capacity for the production of hydrogen from renewable sources.
The company said investment returns should result in average annual growth of 9% in adjusted earnings before interest, taxes, depreciation and amortization to reach EUR5 billion by 2030.
The largest portion of the investment program will be funded through cash flows from operating activities, it said.
RWE said it plans to keep its dividend at a floor of EUR0.90 a share in the coming years and aims for a payout ratio of 50% to 60% of adjusted net income in the long term.
Write to Giulia Petroni at firstname.lastname@example.org