Energy conglomerate EnBW Group aims for massive Europe-wide investment with figures in the billions of euros.
EnBW Announces Ambitious Investment Plans and Potential Capital Increase
Germany's leading energy provider, EnBW, has unveiled its plans for the future, focusing on cost savings, renewable energy investments, and network expansion.
EnBW's CEO, Georg Stamatelopoulos, has revealed that the energy sector transformation is costly, but the company aims to save costs by using overhead lines instead of underground cables for transmission networks. This change could potentially save costs in the order of 30 billion euros, according to Stamatelopoulos.
In the 2024 business year, EnBW reported an operating result of 4.9 billion euros, a decrease from the previous year's 6.4 billion euros. To fund its ambitious investment plans, EnBW is seeking a capital increase of three billion euros, which is contingent on the approval of shareholders.
The majority of EnBW's investments will be in network expansion, with around 85 percent of the total 6.2 billion euros in investments going into the networks and projects for renewable energies in the last year. EnBW plans to invest at least 40 billion euros by 2030, with the goal of making the power sector climate-neutral by 2040.
EnBW has been actively investing in renewable energy sources. The company has invested around 1.4 billion euros in offshore wind power, with plans to build wind farms in Great Britain and the He Dreiht wind farm in the North Sea. The SouthLink direct current line is scheduled to go into operation at the end of 2028.
However, the rollout of electric mobility has recently slowed down. The nationwide utilization rate of fast-charging stations is only 15 percent. In response, EnBW has reduced its expansion target for fast-charging stations to 20,000.
EnBW currently has over 1.5 gigawatts of renewable energy under construction. The company will also invest in new flexible power plants as part of its strategy to adapt to the changing energy landscape.
The state of Baden-Württemberg and OEW Energie-Beteiligungs GmbH each hold 46.75 percent of the shares in EnBW. Stamatelopoulos stated that the capital increase is part of EnBW's plans to fund its investments and ensure its continued growth and commitment to a sustainable future.
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