FRANKFURT (Reuters) – RWE forecast core earnings could fall by a fifth this year, as Germany’s largest electricity producer struggles to halt a decline in profitability at its conventional power plants and grapples with Germany’s plan to phase out coal.
RWE is in the process of taking over the renewable activities of rival E.ON and subsidiary Innogy, turning it into Europe’s No.3 green energy group behind Spain’s Iberdrola and Italy’s Enel.
Margin - Erosion - Fleet - Power - Plants
It is also facing margin erosion at its large fleet of coal- and gas-fired power plants, which have also come under pressure following proposals by a government-appointed commission to exit coal as an energy source by 2038.
“The Commission clearly spoke out against forced layoffs and leaving people in the lurch,” Chief Executive Rolf Martin Schmitz said. “But we need some more details, as there are still a lot of questions...
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