Can you walk us through the basics of your 55 billion euro investment plan, especially in expanding renewable energy?
As part of our Growing Green strategy, we plan to invest 55 billion euros net by 2030, fully focused on clean technologies such as offshore wind, onshore wind, solar energy, batteries, hydrogen projects, and decarbonized flexible power generation like H2-ready gas-fired power plants.
Our aim is to transform RWE into a fully clean energy provider, with the clear goal of achieving net-zero by 2040.
This aligns with the 1.5-degree reduction pathway. Currently, we have around 36 gigawatts of generation capacity installed, excluding coal, which we will entirely phase-out by 2030, and our plan is to scale this up to 65 gigawatts in our key markets, which include the US, Europe, the UK, and selected Asia-Pacific markets.
The transition involves significant additions to our clean energy capacity. We are deeply committed to decarbonizing our portfolio while scaling up renewable energy capacity. At the same time, we not only focus on contributing to global decarbonization efforts, but also to deliver competitive and reliable clean energy solutions across our core markets. , particularly in high- demand areas for clean energy solutions.
What do you think are the main challenges in scaling renewable energy to meet your 2040 targets?
The first major challenge is ensuring a long-term and reliable regulatory framework for investment. Renewable energy projects are capital-intensive and often have long lead times— sometimes five years before construction and commissioning are complete. Without visibility into
the investment framework, we risk not deploying resources effectively. The second challenge is managing the supply chain. Clean energy projects rely heavily on global trade, making them vulnerable to geopolitical disruptions and trade disputes. Access to the necessary technology and materials at reasonable prices is essential.
Additionally, grid capacity needs to be built in parallel with renewable energy projects. Without the necessary infrastructure, we risk not being able to distribute the power where it’s needed, which could undermine the benefits of the investments. A coordinated approach is required to ensure that the clean energy we produce can reach the consumers efficiently.
Considering the current energy crisis, when do you think renewable energy systems will become resilient enough to withstand global disruptions?
The beauty of renewable energy is that it’s local once the infrastructure is in place. Unlike fossil fuels, which require transportation, renewables can be produced and used locally, increasing security of energy supply. However, the downside of renewables is intermittency, meaning electricity production from renewables is not consistent. To make renewables resilient, we need substantial storage capacity or flexible backup systems that can provide electricity when renewable sources are not available.
The challenge we face today is that storage technology is not yet capable of fully supporting a 24/7 renewable energy system. We’re still in the early stages of the transition, focused on installing as much renewable generation capacity as possible. In the future, storage solutions like batteries and hydrogen will play a crucial role in backing up renewable energy systems. The full decarbonization of the energy system, including backup power systems, is the most challenging phase, but we are making steady progress.
How is your company contributing to the development of hydrogen as a clean energy source?
Hydrogen is in its early stages, but it holds great potential as part of the clean energy mix. We're actively investing in hydrogen projects to gain experience and drive down costs. One of our flagship projects in Germany is focused on producing green hydrogen through a 300-megawatt integrated system that includes storage capacity. Storage is critical because it allows us to balance hydrogen production with demand, ensuring that energy can be used effectively.
This project is not just about hydrogen production, but about creating a complete system that integrates storage and infrastructure, such as pipelines. By working with partners on the infrastructure side, we aim to create a scalable, sustainable solution that can help decarbonize industry processes that are hard to electrify, contributing to a cleaner energy future.
How do you view the balance between affordability and sustainability in the energy transition, and what role should governments play?
Affordability and sustainability must go hand in hand if the energy transition is to succeed. Governments and companies need to approach decarbonization rationally by prioritizing the cheapest and most effective solutions first. Tackling the more expensive areas of decarbonization too early could make the entire process unaffordable and reduce public support for the transition.
Therefore, a phased approach, where we first decarbonize the areas with the lowest costs, is crucial.
Governments play a key role in setting the regulatory framework that allows businesses to invest in clean technologies efficiently. They also need to streamline permitting processes to avoid unnecessary delays. Infrastructure development, particularly for things like hydrogen networks and electricity grids, is another area where government intervention is essential. By creating the right environment, businesses can innovate, reduce costs, and drive the transition forward while maintaining public trust.
