RWE’s Offshore Wind business reported an increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in 2022.
The German energy company’s Offshore Wind segment reached €1.4bn in 2022, compared with €1.1bn, partly due to the commissioning of new capacity.
Though wind levels improved compared to the low levels of the previous year, they were still below the long-term average.
For the 2023 financial year, RWE expects earnings for this segment to be between €1.4bn and €1.8bn.
The first full year of operation of the new Triton Knoll and Kaskasi wind farms will have a positive impact.
In addition, RWE expects higher deployment of its plants due to normalised wind conditions and higher realised electricity prices, counteracted by burdens from electricity revenue caps.
In fiscal 2022, adjusted EBITDA in the Onshore Wind/Solar segment reached €800m, compared to €300m in 2021.
Here, too, additional capacity and more favourable wind conditions had a positive impact, although, as in the Offshore Wind segment, wind levels were again below expectations.
In addition, the previous year’s earnings included substantial one-off burdens due to the extreme cold snap in Texas in February 2021.
For 2023, RWE expects earnings for this segment of €1.1bn to €1.5bn.
The business of Con Edison CEB, which has been fully consolidated since 1 March 2023, as well as new-build facilities, will contribute to the increase in EBITDA.
As in the Offshore Wind segment, RWE expects normalised weather conditions and higher realised electricity prices, counteracted by burdens from electricity revenue caps.
Last year, RWE invested €4.4bn net, which was 50% more than in the previous year.
The largest investment was in the German offshore wind farm Kaskasi, whose 38 turbines already feed electricity into the German grid, and the Sofia wind farm in the UK North Sea, which RWE is expecting to complete in 2026.
In addition, there was the one-off lease fee for a site in the New York Bight, on which RWE intends to build offshore wind turbines as well as the investments in new onshore wind farms and solar plants.
In total, RWE completed and commissioned over 30 facilities last year and in 2023, RWE plans to once again invest much more than in the prior year.
Markus Krebber, CEO of RWE, said: “At RWE, all our efforts are dedicated to setting up a climate-neutral energy supply.
“In 2022, we invested a total of €4.4bn net worldwide and commissioned 2.4GW of new capacity.
“Further projects with a total capacity of 6GW are under construction.”