RWE Sets Conditions for Further U.S. Renewables Investment

AI generated summary

RWE, the German power company, has announced stricter conditions for its investments in U.S. renewable energy projects, particularly offshore wind, following a two-year pause initiated after the re-election of President Donald Trump. The company is seeking greater certainty and reduced risks before committing to new projects, requiring all federal permits, secure tax credits, mitigated tariff risks, and established offtake agreements for solar and onshore wind initiatives. CEO Markus Krebber emphasized that further investments will only occur if these conditions are met, reflecting the current political and economic uncertainties in the U.S.

Despite surpassing 10 GW of installed capacity in the U.S. and planning to construct an additional 4 GW, RWE is adopting a more cautious approach due to rising inflation, interest rates, and political tensions. The company has increased its required return on investment and reduced its net investment projections significantly for the coming years. While RWE continues to pursue its net-zero goal by 2040 and has numerous generation projects underway globally, the future of its offshore wind developments in U.S. waters remains uncertain, especially with the changing political landscape.