EON Invests $9 Billion in Renewables as Germany Drops Nuclear

EON AG, Germany’s biggest utility, said it’s investing 7 billion euros ($9.1 billion) in renewable energy projects over the next five years as the country drops nuclear power generation.

EON plans to build at least three offshore wind projects, including the 1 billion-euro Amrumbank West farm in the North Sea, Dusseldorf-based EON said in an e-mailed statement today. Siemens AG, Europe’s biggest engineering company, will supply the the 288-megawatt plant with 80 of its turbines.

“Renewables are a cornerstone of our strategy, and offshore wind is one of EON’s growth areas,” Chief Executive Officer Johannes Teyssen said in the statement. “We intend to commission a new offshore wind farm every 18 months.”

Germany, Europe’s biggest economy, seeks to install 10,000 megawatts of sea-based wind turbines this decade as it raises the share of renewables and phases out atomic energy. Utilities including EON and RWE AG (RWE) are selling assets and cutting jobs to lower costs and boost profit margins as the nuclear exit removes revenue streams.

EON is cutting as many as 11,000 positions and announced a 64 percent slide in nine-month profit, in part because of the phase-out.

The utility plans a 219-megawatt wind farm off the U.K. and a 48-megawatt facility off Sweden’s southern Baltic Sea coast. Both projects, which have a combined cost of about 970 million euros, will use turbines supplied by Vestas Wind Systems AS, EON said.

Japan’s Fukushima Dai-Ichi disaster in March spurred Chancellor Angela Merkel’s government to revise its nuclear energy policy with a plan to shut the country’s 17 reactors by 2022.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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