RWE has taken control of Eon’s renewables assets to become one of the largest green power companies in the world.
The company plans to invest €1.5bn per year in expanding its presence in renewables, according to an announcement to the Frankfurt stock exchange.
RWE added that project partnerships have the potential to increase total investment in clean power to between €2bn and €3bn a year.
The finalisation of the deal, a complex asset swap involving the two German outfits and Innogy, was completed today, the Essen-based outfit said.
EU authorities recently green lighted the transaction that is worth more than €40bn.
RWE believes it will be the second largest offshore wind operator following the merger and third biggest clean power operator in Europe.
In Germany, RWE Renewables has over 9GW of installed capacity with a further 2.6GW under construction.
RWE has also announced plans to become a carbon neutral company within the next 20 years, under a three-stage carbon dioxide emissions reduction plan.
Between 2012 and 2018 the company has reduced CO2 emissions by one-third – about 60 million tonnes – and an additional reduction of approximately 70% is envisaged by 2030.
In order to achieve this, RWE will decommission its last coal-fired power station in the UK, while in Germany more of the group’s coal power plants will gradually be taken offline, following the recommendations of the Commission for Structural Change.
In the Netherlands, RWE is in the process of converting coal plants in Eemshaven and Amer to be fired on biomass.
RWE will also increase focus on storage, biomass and gas-fired power stations primarily fired by ‘green’ gas.
RWE chief executive Rolf Martin Schmitz (pictured) said: “This presents RWE with a huge task. But we have a very clear idea of how to achieve our goal: We will phase out fossil energy sources both consistently and responsibly.
“We will make huge investments in wind and solar power as well as in high-capacity storage technologies.
“The new RWE is and will remain one of the major players in the electricity generation business.”
RWE said that in the future only 20% of its adjusted earnings before interest, taxes, depreciation and amortisation will come from the conventional business.
Three times as much, about 60%, will be earned from renewable energies, while energy trading will be contributing 10% and a further 10% from financial investments.
RWE chief financial officer Markus Krebber said: “In the last few years, we have worked hard to give RWE a robust financial setup and make the company fit for the future.
“Today, our operations are profitable, our processes are efficient, and we offer our shareholders an attractive dividend.
“We have the financial, strategic and personnel power required to run renewable energy operations all over the world.
“This is an outstanding basis from which to seize the opportunities of the future.”
RWE has also rebranded its logo to support the company’s “strategic realignment”, it said.
RWE head of corporate communications and energy policy Stephanie Schunck said: “Our new appearance shows that RWE stands for innovation, change, transparency and sustainability.
“It was important to us to credibly link these statements to the strengths of our market appearance to date, which stands for stability and security.”