CEO of energy generation and supply business eyes 'big growth potential' as energy transition gathers pace
Germany energy giant E.ON has bolstered its investment plans across Europe for the coming four years, arguing energy transition presents a major growth opportunity for its business.
In financial results posted this morning, the company said it would invest €33bn in its retail solutions and electricity infrastructure over the next four years in a bid to shape an "accelerated energy transition in Europe".
At a press conference this morning, E.ON CEO Leonhard Birnbaum said the company's investment programme would depend on the right policy frameworks being introduced. "We also expect regulators and policymakers to create the necessary framework conditions," he said.
More than 95 per cent of the €33bn it intends to spend by 2027 will be in line with the EU's green taxonomy, the company said.
E.ON, one of the biggest suppliers of electricity and gas in the UK, said its earnings across 2022 exceeded expectations, as pre-tax profits hit €8.1bn for the financial year, far exceeding its original forecast of €7.6bn to €7.8bn.
The company is anticipating adjusted group earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €7.8bn to €8bn and adjusted group net income of €2.3bn to €2.5bn in 2023.
Birnbaum said the energy crisis triggered by Russia's invasion of Ukraine had highlighted the urgent need to move away from fossil fuel and towards cleaner energy. "The crisis makes it clear that decarbonisation, the energy transition, and the expansion of infrastructure must be massively accelerated," he said. "This will give enormous impetus to our business of providing reliable energy infrastructure and sustainable customer solutions. We thus see big growth potential for our business in the years ahead."
E.ON spun off its gas electricity generation business as Uniper in 2016, offloading its remaining stake in the business in 2018.
News of the German energy firm's investment spree comes as British Gas parent company Centrica announced plans to extend the lives of two nuclear power stations in England a bid to "bolster security of [energy] supply".
The company said the Heysham 1 and Hartlepool nuclear power stations are now expected to close two years later than originally planned in March 2026.
The Chancellor is expected to deliver a major boost to the nuclear and clean energy sectors at the Spring Statement later today as part of a "reset" of the UK's decarbonisation and energy security plans.
