UK offshore wind farms boost RWE's earnings

New projects off the UK help to offset the impact of weaker wind conditions in 2021, developer explains

by Craig Richard 26 January 2022

Gradual commissioning of the Triton Knoll project in UK waters helped boost RWE's offshore wind earnings last year

Developer RWE increased its profits from offshore wind, while its onshore wind and solar earnings were squeezed in 2021.

The German energy company reported a 3.8% rise in adjusted Ebitda for offshore wind to €1.1 billion in its preliminary financial results for the full year.

It explained that this was mainly due to the impacts of two UK offshore wind farms. RWE increased its stake in the 400MW Rampion wind farm, and also entered the commissioning phase of the 857MW Triton Knoll  project.

These new projects more than made up for year-on-year weaker wind conditions, RWE stated.

Meanwhile, its adjusted Ebitda for onshore wind and solar slid 50.6% to €258 million – though this still exceeded its guidance of €50-250 million.

RWE explained that its onshore wind and solar profits were squeezed mainly due to the negative impact of the Texas cold snap in February 2021, which reduced its earnings by about €400 million.

Overall, RWE expects its company-wide adjusted Ebitda for 2021 to be €3.65 billion – up 11% year on year and above its July outlook. This was due to higher than expected earnings from its hydro, biomass and gas segment and its supply and trading business unit, its chief financial officer Michael Müller explained.