RWE holds capital markets day

RWE may hike European renewables spending after Con Edison deal

BERLIN (Reuters) -RWE sees room to raise renewables investments in Europe, its chief executive officer said on Monday, brushing off concerns the German power producer’s $6.8 billion purchase of Con Edison’s green energy arm would hurt spending on the continent.

RWE, the largest power producer in Germany, on Saturday unveiled the planned purchase of Con Edison Clean Energy Business, drawing criticism from activist fund Enkraft, which slammed the deal as “incomprehensible” given Europe’s energy crisis.

“There was a strategic objective to especially make a step forward in the U.S., which we now clearly achieved with this transaction. But that does not mean that we’re going to scale back on our European and UK ambitions,” RWE CEO Markus Krebber told journalists.

Krebber said capital was not the limiting factor in Europe, adding that the group may upgrade spending targets for the continent when it updates markets on its renewables spending plan at the end of 2023.

“Limiting factors are more … remuneration frameworks, how attractive are they but also still again getting the permits and the planning speed up,” Krebber said.

RWE is targeting gross investments of more than 50 billion euros by 2030, with a heavy focus on solar and wind. Three-quarters of that amount is to be spent in Europe.

Shares in the company were up 1.7% on Monday, a public holiday in Germany while markets are open, with analysts at Bernstein saying the deal is “positive for the RWE equity story as it takes RWE to a position of prominence in the US renewables space”.

(Reporting by Christoph SteitzEditing by Riham Alkousaa and Paul Simao)