FRANKFURT, Feb 3 (Reuters) – Faced with a plunge in profits,
Germany’s power utilities are having to bend to the will of the
government and join the renewable energy revolution, while
smartening up on the retail front with new customer-friendly
energy saving products.
“The situation in the energy sector is miserable, in Germany
and in the whole of Europe,” Peter Terium, chief executive of
RWE, Germany’s second-largest utility by market value,
said at an industry conference last month.
FRANKFURT, Jan 28 (Reuters) – German utility RWE
announced a 2013 writedown on Tuesday of 3.3 billion euros ($4.5
billion), more than twice its net profit a year earlier,
reflecting losses at coal and gas-fired power plants hit by low
wholesale prices and rival renewables.
Top German utilities RWE, E.ON and EnBW
have all announced plans to close or mothball thousands of
megawatts of coal and gas plant capacity.
BERLIN, Jan 21 (Reuters) – Big problems are prompting big
ideas about reforming Germany’s utility sector ranging from a
super-merger among players in the “big four” to creating a “bad”
utility to take over loss-making plants.
The business model for German utilities has crumbled over
the last three years, rocked by the country’s decision to drop
nuclear energy by 2022, record-low wholesale power prices and a
boom in solar and wind power capacity that is pushing coal and
gas plants off the grid.
FRANKFURT (Reuters) – Germany’s energy sector gets its first major speech from new economy and energy minister Sigmar Gabriel this week with utilities and households both hoping he can ease the cost burden imposed on them by Berlin’s push for greener energy.
Germany is undergoing Europe’s deepest energy transformation as it exits nuclear, renewables surge and cheap coal plays havoc with plans to switch to cleaner natural gas.
FRANKFURT, Jan 17 (Reuters) – Offers for RWE DEA,
the oil and gas exploration and production unit of RWE
, are expected to come in well below the initial
expectations of Germany’s second-biggest utility, two people
close to the negotiations told Reuters.
Bids, which are due on Monday, Jan. 20, will value DEA at
about 4 billion euros ($5.4 billion), the people said on Friday,
less than the up to 5 billion that sources said had been
originally targeted by RWE.
DUESSELDORF/FRANKFURT, Jan 14 (Reuters) – Germany’s No.2
utility RWE is preparing to sue for millions of euros
of damages after a federal court confirmed that a state’s
decision to shut down the company’s Biblis nuclear plant for
three months in 2011 was illegal.
A spokeswoman for RWE said it planned to take action against
the German state of Hesse, which ordered the closure of Biblis,
Germany’s oldest nuclear plant, as a precaution following the
disaster at Japan’s Fukushima plant nearly three years ago.
FRANKFURT, Dec 18 (Reuters) – Faced with radical green
policies at home, German energy utility E.ON has
turned to foreign markets again, but with its past mishaps
abroad still fresh in the memory investors worry that its latest
$1.3 billion investment in Brazil could prove at best ill-timed.
“You have to be careful not to get carried away by foreign
markets,” said Ingo Becker, European head of utility research at
VILNIUS/BERLIN, Nov 28 (Reuters) – Ukrainian and Slovak
authorities are in “very constructive negotiations” and could
sign a reverse-flow pipeline deal next week to curb Ukraine’s
dependence on Russian gas, officials from Kiev and Brussels
European Commission officials and Ukraine’s energy minister
said earlier this month a deal to ship gas through Slovakia was
all but agreed and just needed to be signed by both sides.
LONDON/FRANKFURT, Nov 27 (Reuters) – German parties have
agreed to limit the growth of renewables and reform
controversial incentives for the sector by next summer in a move
to slow the rise in electricity costs for households and give
big utilities more time to adapt their business models.
Chancellor Angela Merkel’s conservatives and the centre-left
Social Democrats (SPD) clinched a coalition deal early on
Wednesday that puts Germany on track to have a new government in
place by Christmas.
FRANKFURT/DUESSELDORF (Reuters) – German utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) said it would cut more jobs and trim capital spending as it joined peers in warning of a deep crisis in Europe’s energy industry that would keep a lid on growth in the foreseeable future.
RWE plans to cut about 6,750 jobs in the 2014-2016 period, bringing the total since 2011 to about 13,000, roughly 18 percent of its workforce at the time.