Not only is RWE one of Europe’s largest fossil energy utilities, but at the same time it is one of the largest renewable energy developers. The total amount of dedicated to gross investments in new energy generation and storage technologies, planned over 2021-30, amounts to over EUR50bn.
RWE offers the solution to both Germany’s need to skew power systems away from gas and accelerating system transformation. Its indigenous lignite mines and power plants are probably among the country’s most important strategic energy assets. Its massive RES activities offer part of the mid- and long-term solution for power system independence. Europe, and in particular Germany, will burn more coal for longer and (needs to) build out RES faster—the group’s two sides stand to benefit. The operating environment for the group’s fossil side (flexible generation and trading) is improving materially and lignite’s true (and massive) value is set to unfold over 2023-24.