RWE to cut investment programme by $10.9b following renewables spending spree

RWE, Germany's largest utility, on Thursday said it would cut investments by more than a fifth until the end of the decade, citing uncertainty around renewable returns, geopolitical risks as well as supply chain constraints.

The company, also the world's second-largest developer of offshore wind farms, said it would pare back investments by 10 billion euros ($10.9 billion) to around 35 billion euros by 2030, also raising the return requirements for new projects.

"Given higher uncertainties in the investment environment, we have raised the requirements for future investments. As a result of stricter risk management and higher return expectations, we will invest less than previously planned through to 2030," CEO Markus Krebber said.

Along with peers, RWE has faced a more challenging global investment environment for renewable energy projects, while investors have for some time criticised the German utility's capital allocation as a result.

Offshore wind earnings declined in 2024, with expenses for the repair and maintenance of the units increasing.

In November, RWE announced that it was delaying investments due to greater risks for offshore wind projects in the US and a slower ramp-up of the European hydrogen economy.

(Reporting by Christoph Steitz Editing by Ludwig Burger)