RWE to Establish New Renewable Company

RWE has announced that it will establish new renewable company called RWE Innogy that will operate from February 1, 2008. RWE intends to invest at least E1 billion per year from 2008 onwards in expanding its renewable activities.

Initially, the plan is to pool some 1,500MW of generating capacity within the new company. The business model includes the planning, construction and operation of plants for renewable power generation and energy recovery. Organic growth will be the key focus. RWE Innogy will also reinforce its position by making strategic acquisitions of existing companies and power plants.

In addition, RWE will intensively pursue activities in the area of solar and geothermal power, along with wave and tidal power plants. Innovation is a central task of the new company. T

he company has also introduced Fritz Vahrenholt as the head of the new company.

Juergen Grossmann, CEO of RWE, said: “We have set some very ambitious targets for the new company. I am delighted that Mr Vahrenholt is on board, as he has extensive experience in the area of renewables.”