RWE Innogy is to expand its renewable energy operations in wind and hydro and enter the solar PV market via a new subsidiary.
The German utility said combining renewables, grid and retail operations in one unit with access to capital markets “lays the foundation for further growth in these fields”. Acquisitions are also on the table.
RWE chief executive Peter Terium said: “We aim to float roughly 10% of the shares in the new company on the stock market towards the end of the year as part of a capital increase. According to current planning, over half of the proceeds of the flotation will be earmarked for the further expansion of renewable energies.”
RWE Innogy chief executive Hans Bunting said the business would shift its focus from installed megawatts to return on investment.
“We see four major pillars for further growth: increasing shares in projects, organic growth in onshore and offshore wind, entry into new markets and expanding the portfolio to include large PV projects.”
In the renewable energies sector, RWE sees growth opportunities for onshore wind markets such as Ireland, the US and MENAT region (Middle East, North Africa and Turkey).
RWE is planning a separate business area for large PV projects. Investments will centre on sunny locations like MENAT. At the end of 2015 the company and JinkoSolar qualified to tender for an 800MW photovoltaic facility in Dubai.
RWE Innogy said its operating result in 2015 would more than double and that it has strengthened its position within the wider utility group and the market as a whole.
Image: Lambrigg wind farm (RWE)
