German utility RWE will make “massive” investments in wind and solar, before “placing its chips” on storage, biomass and gas to achieve carbon neutrality by 2040 while enabling security of supply.
The firm said the gas it burns to generate power will be “predominantly” green gas. It has committed to spend €1.5bn net per annum to build out a cleaner portfolio as governments phase out coal, a sum it said could double via partnerships.
“This [commitment] presents RWE with a huge task. But we have a very clear idea of how to achieve our goal: We will phase out fossil energy sources both consistently and responsibly. We will make huge investments in wind and solar power as well as in high-capacity storage technologies. The new RWE is and will remain one of the major players in the electricity generation business,” said CEO, Rolf Martin Schmitz.
The company’s current renewables portfolio stands at 9GW, following approval of its asset swap with Eon, with 2.6GW of projects under construction.
RWE said the bulk of its earnings in future will come from renewables.