Germany headquartered global energy company RWE AG has secured Qatar Investment Authority (QIA) as an investor with a little less than 10% stake in the company, part of which will be deployed to acquire Con Edison Clean Energy Businesses (CEB) in the US for $6.8 billion.
The sovereign wealth fund of Qatar will shell out an aggregate €2.43 billion to buy a mandatory convertible bond of RWE that will go to support the latter's accelerated Growing Green Strategy under which it aims to invest €50 billion gross by 2030 out of which €15 billion has been earmarked for the US.
Con Edison or ConEd is an energy services company in the US. Through Con Edison CEB it operates about 3 GW renewable energy capacity out of which 90% comprises solar energy, and a development pipeline of over 7 GW. The acquisition expands RWE's US project pipeline to exceed 24 GW of onshore wind, solar and batteries and operational asset base to 7.2 GW, while growing its presence across various states in the country.
Growth from the acquisition for RWE will come on top of its existing plans for the US market, it added.
RWE's move to expand its clean energy business in the US comes in the wake of the government promising financial incentives and a stable policy framework through the Inflation Reduction Act (IRA) (see Inflation Reduction Act 2022 Now A Law).
"QIA's long-term capital commitment enables RWE to finance the acquisition of Con Edison Clean Energy Businesses and hence will drive our additional green growth in the years to come," said RWE CEO Markus Krebber. "The combined development pipeline, one of the largest in the US, provides tremendous opportunities for sustainable and value accretive growth, backed by a strong financial position," he added referring to the Con Edison CEB acquisition.
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