DUESSELDORF, Germany (Reuters) – Germany’s E.ON (EONGn.DE: Quote, Profile, Research, Stock Buzz) suffered its biggest ever annual loss after booking billions of euros in charges on its ailing power plants, clearing the way for it to spin off these assets hit hard by ultra-low wholesale prices.
Europe’s power companies are having to adapt to big changes in their industry caused by a steep decline in oil prices and a surge in renewable energy capacity which has driven many coal and gas-fired plants out of the market.
ESSEN, Germany, March 10 (Reuters) – Germany’s
second-biggest utility RWE warned profits and
investments would fall further this year because of a crisis in
the power sector, offering little hope that the 117-year old
group would return to growth in the near future.
“The vale of tears has not yet been passed,” Chief Executive
Peter Terium told journalists at the company’s annual press
conference on Tuesday.
ESSEN, Germany (Reuters) – German utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) expects profit to fall for a third consecutive year in 2015 under pressure from low wholesale electricity prices and competition from solar and wind power.
“Conditions in conventional electricity generation are deteriorating faster than we can take countermeasures,” Chief Executive Peter Terium, whose contract was extended until 2021 last week, said in a statement on Tuesday.
FRANKFURT/LOS ANGELES, Feb 18 (Reuters) – German solar
energy pioneer Frank Asbeck is betting that the United States
can rehabilitate him and his company SolarWorld,
which he rescued from the jaws of insolvency two years ago,
making himself an industry outcast in the process.
Asbeck, 55, pursued measures both imaginative and ruthless
to ensure that his solar panel company did not fall victim to a
crisis that claimed many of its German peers.
FRANKFURT/DUESSELDORF, Jan 30 (Reuters) – SMA Solar
, Germany’s largest solar company, expects to make a
loss for the third year in a row in 2015, with no let up in
falling demand in Europe and fierce competition from Asia.
However, the company said on Friday it aimed to return to a
profit in 2016, helped by more than 160 million euros ($181
million) of cost cuts.
BERLIN, Jan 21 (Reuters) – Political infighting risks
delaying beyond a 2022 deadline the construction of high-voltage
power lines that are a core element of Germany’s transition away
from nuclear power, grid firm TenneT TSO GmbH said.
The firm, part of the Dutch TenneT group, applied to
regulators in December to build the SuedLink line.
BERLIN (Reuters) – RWE is exploring the sale of power plants, its chief operating officer told Reuters on Tuesday, frustrated with profit erosion and lack of political support for its struggling generation units.
Europe’s power sector has been hit by a sluggish economy, low wholesale prices and a surge in demand for cleaner renewable energy which is replacing gas and coal-fired power plants.
FRANKFURT, Jan 19 (Reuters) – Germany’s biggest utilities
have set aside tens of billions of euros to fund the country’s
exit from nuclear power from 2022, when the last reactor leaves
the grid and the clear-up begins.
But as an energy crisis puts the value of the assets
underpinning those provisions at risk, concerns are growing that
taxpayers may end up footing part of the bill, undermining an
ambitious shift to renewable power on which Chancellor Angela
Merkel has staked a hefty chunk of political capital.
FRANKFURT, Jan 16 (Reuters) – German utility RWE
will complete the sale of oil and gas unit DEA to
Russian tycoon Mikhail Fridman by early March, it said on
Friday, easing fears of a potential collapse.
RWE, whose shares were up 6.1 percent at 1300 GMT on the
news, had originally planned to close the transaction by the end
of 2014 but in November warned it could take longer.
FRANKFURT, Jan 12 (Reuters) – Germany’s largest utility E.ON
AG has agreed to sell its Italian gas- and coal-fired
power plants to Czech energy company EPH, ridding itself of
ailing assets from an acquisition spree in 2007.
Privately-held EPH will take over 4,500 megawatts (MW) worth
of thermal power capacity in the deal, which is expected to
close in the second quarter of 2015.