German energy giant RWE AG has announced a €10 billion ($10.85 billion) reduction in its planned investment in green technologies by the end of the decade, citing increasing financial and regulatory risks, particularly in the United States. The company now anticipates net new spending of €35 billion from 2025 to 2030, down from previous projections.
RWE attributed the cut to “regulatory uncertainties, constraints in the supply chain, geopolitical risks, and higher interest rates,” which have driven up the required rate of return for new projects. “Given higher uncertainties in the investment environment, we have raised the requirements for future investments,” Chief Executive Markus Krebber said in a statement accompanying the firm’s earnings report.
The company, which became one of the largest renewable energy players in the US following its 2023 acquisition of Con Edison, had previously warned that rising risks in the country could lead to delays in global green investments. In late 2023, it opted for a €1.5 billion share buyback instead, a strategy it signalled it may continue in its annual report released on Thursday.
Despite the spending cut, RWE said the remaining funds would be allocated “primarily” to wind, solar, and battery storage projects in Europe and the US. The company plans to invest €7 billion this year, down from €10 billion in 2024.
This month, RWE also confirmed job cuts in its US offshore wind division, a sector that has faced criticism from President Donald Trump, who halted new lease sales and project permitting on his first day in office. While RWE intends to proceed with its three US offshore wind projects, it will keep investment in them to a minimum unless policy conditions improve.
Looking ahead, RWE expects lower adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2024, forecasting a range of €4.55 billion to €5.15 billion. Last year, the company hit the upper end of its projections, posting earnings of €5.7 billion.
