RWE cuts green spending by €10 billion, citing risks

RWE AG, a major German energy company, has announced a significant cut in its spending on green technologies. The company will reduce its planned investments by €10 billion ($10.9 billion) by 2030. This decision comes due to increased investment risks, especially in the United States. RWE now aims for €35 billion in new spending over the next five years. The company cited several reasons for this change, including regulatory uncertainties, supply chain issues, geopolitical risks, and rising interest rates. These factors have made it tougher to secure financing for new projects. CEO Markus Krebber mentioned that high uncertainties in the investment environment have led to stricter requirements for future investments. RWE recently became a leading renewable energy player in the US after acquiring Con Edison in 2023. Earlier, RWE warned about the potential delays in its global green projects due to heightened risks following the election of President Donald Trump. Instead of investing heavily, RWE opted for a €1.5 billion buyback, with plans to buy more shares in the future. The remaining investment funds will be focused primarily on wind power, solar, and battery projects in Europe and the US. This year, RWE plans to spend €7 billion, down from €10 billion in 2024. Additionally, RWE announced layoffs for offshore wind employees in the US, an area where Trump has been critical. However, the company plans to continue with its three offshore wind projects in the US, provided conditions remain favorable. RWE also expects its earnings before interest, taxes, depreciation, and amortization to be lower this year, estimating between €4.55 billion and €5.15 billion, despite reaching higher earnings of €5.7 billion last year.