RWE Wants to Increase Electricity Generation from CO2 Free or CO2 Reduced Sources

RWE AG intends to increase its electricity generation from CO2 free or CO2 reduced energy sources, such as renewables, gas and nuclear power, to three quarters until 2025, CEO Jürgen Großmann said at the annual shareholders’ meeting. Renewable energy shall account for 30% of the energy supply by this time. 

Despite the financial crisis Germany’s second biggest utility was able to increase the operating result by roughly 4% to EUR 7.1 billion, as previously reported. Regarding the future, Mr Großmann was more cautious, mentioning delays with respect to power plant projects, lower margins in the electricity and gas business. Besides, electricity suppliers will have to buy C02 emissions allowances at market prices as of 2013.

By avoiding CO2 emissions, RWE AG wants to reduce costs. RWE estimates it needs to purchase emission allowances for 100 million tons of emissions in 2013. The company expects the price per ton to range between EUR 20 to 30 at the time. Hence, RWE is already buying allowances for 2013 and the following years at the current lower prices.

In his presentation, Mr Großmann called for an extension of the life-span of each of the 17 nuclear power plants in Germany to reduce CO2 emissions. RWE was prepared to pass on a substantial amount of the additional revenue, he said. He rejected the allegations that prolonging nuclear power would hamper the expansion of renewables.

Sources: Frankfurter Allgemeine Zeitung, 23 April 2010, page 19, Handelsblatt

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