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.
PARIS/FRANKFURT, Nov 13 (Reuters) – Germany’s E.ON and
French GDF Suez, two leading European utilities, posted lower
earnings, partly blaming government and EU policies for
prolonging an energy crisis that is leading to power plant
closures and asset writedowns.
Both companies said they would step up investment in
emerging markets with high growth and stable regulation to try
to counter the slowing market in western Europe, where economies
are struggling to emerge from recession.
FRANKFURT, Nov 12 (Reuters) – Underlying profits at EnBW
Energie Baden Wuerttemberg AG, Germany’s third-biggest
utility, have been hit by lower wholesale power prices and weak
demand for energy due to the euro zone’s economic downturn.
The company reported on Tuesday a 2.5 percent fall in its
adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) to 1.816 billion euros ($2.43 billion) in
the first nine months of the year and said it still expected a
5-10 percent fall for the full year.
FRANKFURT (Reuters) – Germany’s No. 2 utility, RWE (RWEG.DE: Quote, Profile, Research), is expected to cut more jobs than planned, squeeze more costs and sell more assets when it reports earnings this week due to weaker prospects in electricity generation as the country shifts toward renewable energy.
RWE is set to slash a further 3,400 jobs and increase the scope of its savings programme, dubbed “Neo”, to 800 million euros $1.07 billion (669 million pounds), up from at least half a billion, a source familiar with the matter said in September.
FRANKFURT (Reuters) – SMA Solar (S92G.DE: Quote, Profile, Research, Stock Buzz), the world’s top maker of solar inverters, expects sales to grow by up to 44 percent next year, banking on growth in Japan and the United States as well as hundreds of job cuts after European markets faltered.
Solar markets in Europe have taken a beating as governments pare back crucial subsidies, while a glut in cells, modules and inverters has led prices to collapse, driving many players out of the industry or into the arms of larger conglomerates.
FRANKFURT/DUESSELDORF (Reuters) – A latecomer to renewable energy, Germany’s RWE is trying to turn itself green at a time when it lacks the two resources it needs most: time and money.
Struggling with falling earnings, 35 billion euros ($48.2 billion) in net debt and a 72-percent drop in its shares from their 2008 peak, Germany’s no. 2 utility has slashed the amount of its own cash that it plans to invest in wind, solar and other renewables, and is embarking on a search for partners.
FRANKFURT (Reuters) – German utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) is asking potential buyers of its oil and gas unit DEA RWEDE.UL to submit offers by late December, in a deal that could fetch up to 5 billion euros ($6.8 billion), three people familiar with the matter told Reuters.
RWE, suffering from loss-making power plants, a boom in renewable power and 35 billion euros in net debt, said in March it planned to sell DEA to save billions of euros of investment in the exploration and production business.
FRANKFURT/DUESSELDORF, Sept 6 (Reuters) – Concerned about a
possible dividend cut, top shareholders of RWE are
piling pressure on Germany’s No.2 utility to present a
convincing strategy on how to position itself as the country
experiences a renewable energy boom.
Europe’s largest economy has seen its energy sector slide
into crisis following its decision to abandon nuclear power by
2022, as a massive expansion of solar energy has dealt a heavy
blow to traditional utilities, forcing them to close plants
generating thousands of megawatts.
FRANKFURT, Sept 4 (Reuters) – Power plant operator Next
Kraftwerke expects to nearly triple revenues this year as it
links solar, wind and biogas units to respond nimbly to
Germany’s sudden big surges in demand – a model it plans to
export to other countries.
“We’re basically acting like a big operator, it’s just about
many small power units that form a big one,” said Jochen
Schwill, co-chief executive of Next Kraftwerke, which runs one
of Germany’s largest so-called virtual power plants (VPP).