- RWE reduces planned investment by €10bn (£8.4bn) over the next five years, citing unpredictable impacts of U.S. energy policy changes.
- The company warns of lower-than-expected profits in 2025, with net income forecasted to drop from €2.3bn to between €1.3bn and €1.8bn.
RWE, Britain’s largest power generator, will cut its investment in green energy due to uncertainty caused by Donald Trump’s rollback of net-zero policies in the U.S.
The German company, which provides about 15% of the UK’s power, warned that its profits will fall short of expectations this year. It will also reduce planned investments by €10bn (£8.4bn) over the next five years.
RWE, the second-largest developer of offshore wind farms globally, said it is impossible to predict how changes in U.S. energy policy will affect the global expansion of low-carbon energy.
Around half of RWE’s renewable energy capacity is in the U.S., where Trump has criticised offshore wind technology. RWE has several early-stage projects in the sector, and the company is now reviewing its plans.
RWE now expects its 2025 net income to be between €1.3bn and €1.8bn, down from €2.3bn last year. CEO Markus Krebber said, “Given the rising uncertainties, we must take a more cautious approach.”
This decision reflects broader challenges in the energy sector, including geopolitical risks, supply chain issues, and lower returns. Other companies are facing similar difficulties. Denmark’s Orsted has reduced its 2030 investment plan by 25%, while BP has sold its wind assets and refocused on oil and gas.
RWE’s UK gas-fired power stations can generate about seven gigawatts, enough to power 7 to 8 million homes. The company had long-term plans to convert these plants to run on green hydrogen or install carbon capture and storage (CCS) technology. However, these plans may now face delays.
Earlier this year, RWE announced plans to retrofit Staythorpe Power Station in Nottinghamshire with CCS technology. This could capture 3.7 million tonnes of CO2 each year, the equivalent of removing 800,000 cars from the road.
The company also has CCS initiatives at its Pembroke and Great Yarmouth plants, and it is considering a new CCS-equipped plant in Stallingbrough.
Despite these efforts, RWE still faces challenges in decarbonising its operations. Last year, around 30% of its power came from coal. The company operates seven sizeable coal-burning power stations in the Rhenish mining region, responsible for much of the 75 million tonnes of CO2 RWE emitted in 2024.
It is unclear how RWE’s slowdown in investment will affect the UK’s decarbonisation efforts. Meanwhile, the company faces pressure from investors to increase shareholder returns. Morningstar and investor Enkraft have urged RWE to focus on share buybacks to boost value.
Enkraft criticised RWE’s strategy, saying, “RWE lacks the credibility to generate the targeted returns with its investments. Once trust is restored, investors will be more willing to provide capital to RWE.”