RWE plans deeper Innogy cuts

German utility RWE will more deeply cut investments at its renewables unit Innogy as the embattled company steps up cost-saving measures, it revealed in a presentation this week.

As part of a “streamlining” of its renewables business, RWE now says it plans to invest some €1bn ($1.36bn) in renewable projects from 2014 to 2016.

In September 2013, RWE still maintained that Innogy would invest about €1bn in 2013 alone, to be followed by €500m each in the two following years.

RWE didn’t detail how it would split up the €1bn throughout the 2014 to 2016 period, but Innogy chief executive Hans Bünting according to the Süddeutsche Zeitung newspaper said the unit likely will have to reduce the €500m capex figure for this year and next.

RWE is increasingly seeking partners for large projects, as part of a refocusing that will also see it pursue third-party service work and drop the npower name in the UK.

“The investment behaviour will change,” Bünting told the newspaper.

“Unfortunately, we can’t finance large projects alone anymore.”

As its main RE projects, RWE holds on to the €2.7bn Gwynt y Môr wind farm off the UK coast that has a capacity to generate 576MW and in which it holds a 60% stake. It will also go ahead with the fully-owned €1.4bn 295MW Nordsee Ost wind farm off Germany that it now expect to commission in the fourth quarter of 2014 at the earliest.

RWE in November had said it will halve its 1,500-people-strong staff at Innogy by 2016 and reduce the speed of the build-up of its renewable energy capacity.

Over the past two months RWE abandoned its plans for its 1.2GW Round 3 Atlantic Array offshore wind farm and shrank its Triton Knoll and Galloper projects.