E.ON sees RE growth in first half

Profits rose in the renewables division of E.ON in the first half of the year, as the German utility giant continued to grapple with a transforming domestic market and falling power prices.

E.ON’s renewables unit posted operating profits (Ebitda) of  €870m ($1.16bn) in the six months to June, up 7% on the same period last year.

The wind and solar segment showed 17% Ebitda growth, offsetting a small fall in hydropower earnings.

E.ON said that was due to the success of its “build-and-sell” strategy of selected asset disposals, which CEO Johannes Teyssen said “has definitely paid off”.

E.ON’s renewables investments hit €418m in the first half, 30% higher than last year.

Teyssen told investors the group is on course to bring Germany’s 288MW Amrumbank West and UK’s 219MW Humber Gateway into service “late next summer”.

E.ON also expects the 211MW Grandview 1 onshore wind farm in Texas to come onstream next year.

“We are working with our finance partner GE to build Grandview 1,” said Teyssen.

E.ON’s group underlying net profit fell 20% to €1.525bn in the first half, on track with its forecast.

Teyssen said wholesale power prices continued to fall, though the trend was “somewhat less pronounced” in Q2.

The E.ON boss said the EEG renewables law reform in Germany “at least demonstrates the German federal government has recognised the problems of implementing the transformation of the country’s energy system.”