E.on's renewables investment doubles
GERMANY: E.on doubled its investment in renewables in the first quarter of the year as the utility pushed forward with the development of offshore wind projects.
Investment in wind and solar hit EUR 183 million, from EUR 91 million a year before, largely due to the ramping up of development of the 288MW Amrumbank West project in German waters and the 219MW Humber Gateway UK offshore project.
Wind and solar saw its earnings before interest, taxes, depreciation, and amortisation (Ebitda) gain 47% to EUR 329 million in the quarter. E.on said this was down to its "build-and-sell strategy", under which it disposed of a number of wind assets, including the sale of an 80% stake in the 207MW Rødsand 2 Danish offshore project .
The company's generation of electricity from wind stayed steady at 3.8 terawatt hours, accounting for 4.6% of the company's total generation, with the majority coming from outside Germany, but still within Europe.
The whole renewables division, which also includes hydro, saw its sales increase by 8% to EUR 665 million.
Earlier this year E.on launched a project to combine its renewable and conventional generation businesses into a single segment, in order to "create a leaner organisation".
The company as a whole saw its Ebitda decline by 12% "owing to a continued difficult business and regulatory environment and in the wake of divestments".