- E.ON has announced its long-term growth strategy at its recent Capital Markets Day
- It plans to connect 35 GW to 40 GW of new renewables to its grid by 2026 for which it will expand its energy network
- The utility will also invest in expanding its decentralized energy infrastructure solutions business
- It will also invest in offering decarbonization solutions to private, business and industrial customers, as well as municipalities
E.ON, the German electric utility, has unveiled long-term outlook for the company stating that it will invest around €22 billion into expanding its energy network by 2026, with an aim to connect an additional 35 GW to 40 GW of renewables to the grid.
This €22 billion is part of the group’s €27 billion growth strategy investment plan management shared during its Capital Markets Day.
Touting a customer base of around 50 million in Europe and the largest distribution network in the continent, E.ON said it is witnessing a rapidly growing demand from private, business and industrial customers, as well as municipalities to offer more decarbonization solutions.
“Without our infrastructure, there will be no energy transition. In the next 5 years alone, we will connect an additional 35 to 40 GW of renewables to our grids. Each of these plants helps us to achieve the Paris climate goals. Added to this is the expansion of millions of heat pumps, battery storage systems and electromobility,” said Thomas König, responsible for energy networks on the E.ON Board of Management.
The utility will also expand its decentralized energy infrastructure solutions, intending to invest €500 million to €600 million annually until 2026.
Focused on increasing digitization to operate its grids in the future down to every voltage level, the utility has planned to invest around €2 billion in the digitization of network planning, monitoring and control by 2026. It will also invest in the hydrogen economy aiming to provide access to hydrogen to small and medium-sized industrial companies, as well as in expanding charging infrastructure.
E.ON’s focus on renewables is not surprising as Europe’s razor sharp focus on achieving carbon neutrality by 2050 is driving all nations and their utilities to double up their efforts towards decarbonization. However, the announcement comes after E.ON sold its solar, wind and hydropower business in the form of Innogy to RWE in exchange for biomass, biogas and gas storage activities from the latter.
Recently, RWE said it will invest €50 billion to grow its portfolio of onshore & offshore wind, solar, batteries, flexible generation and hydrogen to 50 GW by 2030. It will be spread in the markets of Europe, North America, and the Asia-Pacific.
In May 2021, the German Association of Energy & Water Industries called on the government to have an official target to install at least 150 GW cumulative solar power capacity by 2030 (see German Utilities Want 150 GW Installed Solar PV By 2030).