RWE to decide on splitting business

RWE is set to vote on whether to adopt a new strategy for the business today.

It could mean the splitting of the utility with one part of the organisation being aimed at renewable energy and the other continuing to concern itself with conventional gas and coal-fired power generation.
RWE building
The utility’s supervisory board will approve whether or not the change of direction is the right one.

Its municipal shareholders, which hold about 24 percent of the company and four seats on the supervisory board, are expected to approve the plans even though they might dilute their stakes, Reuters reports.

"There simply is no alternative," one of the sources said.

RWE, E. ON and their smaller peer  EnBW Energie Baden-Wuerttemberg AG  are grappling with Germany’s energy transformation, begun in 2000. Germany wants green renewable energy to supply up to 45 per cent of power needs by 2025, and 80 per cent by 2050. That compares with 33% in the first half of this year.

 



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