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Focus shifts to investing in renewable energy – German power provider RWE

RWE’s “business of renewable energy will provide stable value contributions and remain the only area for growth investments”

Germany’s RWE looks for renewable energy push Eco News, 30 Oct 13 Germany’s major power producer RWE recently surprised by revealing it was departing from its traditional business model and would “create value by leading the transition to the future energy world”.

Now, RWE is looking for new ways to boost its renewable power business, including partnerships with investors, according to an internal document seen by Reuters Newsagency.

In the past Germany’s largest power producer, has traditionally based its business model based on large-scale thermal power production.

European media reports say the new strategy was decided on at a meeting of RWE’s Supervisory Board in the Polish capital, Warsaw, in September and will be revealed publicly soon.

RWE plans to “develop new partnership models with financial investors” to fund renewable projects, according to the document.

Its technological focus has been on wind power, which is better suited to larger utilities due to its plant-sized parks and requires large investments. A steep drop in wholesale power prices and a boom in renewable energy, which has driven conventional power plants into loss-making territory, have hit hard at RWE, along with other German utilities E.ON and EnBW.

RWE, which is scheduled to report nine-month results on November 14, could not immediately be reached for comment.

RWE’s “business of renewable energy will provide stable value contributions and remain the only area for growth investments”, Reuters reports the document saying….. http://econews.com.au/news-to-sustain-our-world/germanys-rwe-looks-for-renewable-energy-push/

October 31, 2013 - Posted by Christina Macpherson | business and costs, Germany, renewable