RWE To Take Over Con Edison’s Clean Energy Business

Germany’s RWE To Use Part Of Qatar’s Cash Infusion To Acquire Con Edison Clean Energy Businesses In US

RWE To Take Over Con Edison’s Clean Energy Business

As the US becomes an attractive market for renewable energy investors, thanks to the IRA 2022, RWE has expanded its local renewable energy portfolio to more than 24 GW with the acquisition of Con Edison CEB. (Photo Credit: RWE AG)

  • RWE has raised €2.43 billion equity from Qatar Investment Authority in lieu of little less than 10% stake in the company
  • It plans to use proceeds to acquire Con Edison Clean Energy Businesses in the US for $6.8 billion
  • The move expands RWE’s US project pipeline to over 24 GW comprising onshore wind, solar and batteries

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.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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