Corporate Strategy


RWE AG: An international energy group with three future-proof pillars

An international energy group with three future-proof pillars – that’s the “new” RWE. RWE Generation and RWE Supply & Trading are operational business units and independent companies while innogy SE will be a pure financial holding.

  • With its flexible power plant fleet, RWE Generation plays an important role in energy transition, since conventional power generation is needed as a reliable partner for intermittent renewable energy.
  • As a leading European energy trading centre, RWE Supply & Trading operatesas a commercial platform between the activities of RWE Generation and the global trading markets for energy and energy-related raw materials. In thiscapacity, it is also available to innogy. The company continues to focus on selective growth.
  • innogy combines the business segments Grid & Infrastructure, Retail and Renewables. RWE remains the majority shareholder of innogy. The two companies have entered into an agreement that is to ensure a high degree of independence for innogy.

In addition to these three main pillars, RWE AG has more affiliates under its umbrella including a minority holding in Amprion, the well-established, independent transmission system operator.

RWE Generation SE: an important player in the German and international energy business

The energy transition and the associated expansion of renewable energy requires conventional energy generation as a partner to offset the fluctuations in solar and wind energy feed-in. This back-up capacity will be needed for quite some time to come and RWE is well equipped to meet this need with one of the most flexible and efficient power plant fleets in Europe. Boasting a broad generation portfolio of gas, hard coal, lignite, nuclear energy and hydropower, the company has a strong position in its core markets in Germany, the UK and the Netherlands.

Developments in wholesale prices are putting severe economic pressure on conventional generation as a whole in Europe. RWE Generation will therefore systematically pursue its successful efforts to cut costs and enhance efficiency. But in order to be able to keep the required conventional power generation in the market and ensure the established level of supply security, a changed market design will be needed in future. The aim must be to provide remuneration for the provision of capacity just as France and the UK are already doing today. In this context, RWE Generation advocates the sector model of a “distributed capacity market”.

In recent years, RWE has invested a great deal in the modernisation of its assets. The installed capacity of its gas power plants makes the company No. 4 in Europe and No. 1 in Germany.

The European climate targets for 2050 are also an important target mark for RWE. Lignite-fired power generation is making its contribution here:

  • Carbon emissions from lignite power generation in the Rhenish mining area will be reduced by 15 percent by 2021 thanks to the so-called capacity standby.
  • The growth of renewables in the 2020s and the resulting decline in conventional electricity production as well as the phase-out of the Inden mine and the shutdown of the Weisweiler power plant will lead to a cut in carbon emissions from lignite of 40 – 50 percent by around 2030.
  • In the 2030s, carbon emissions will drop significantly as a result the shutdown of further plant units before even the most modern plants will go off-line when the Hambach and Garzweiler mines are phased out towards the middle of the century.

Our energy trade – indispensable for functioning energy markets

As the leading European energy trading centre, RWE Supply & Trading is one of the most important companies of the European energy industry. It serves as a commercial platform between the activities of RWE Generation and the global trading markets for energy and energy-related raw materials. The company will systematically pursue its successful growth course – by marketing its highly specialised know-how in promising markets outside Europe, i.e. North America or Asia, for instance.

RWE Supply & Trading is seeking to double its business with third-party customers and further expand its international trading business in the medium to long term. Substantial room for growth is offered in particular by business with major customers in Europe. Here the range extends from traditional energy-supply agreements to comprehensive energy-management solutions to complex risk-management concepts. The company sees further growth opportunities in the management of long-term gas agreements. In addition, RWE Supply & Trading is an energy manager ensuring a secure supply of electricity and playing a key role in the implementation of the energy transition. With the commercial management of RWE’s power plants, it also contributes to offsetting fluctuations in renewable energy and stabilising the supply of electricity.

The new RWE AG on course for the future

With the new company structure RWE has laid the foundation for improving its financial strength and making the Group more efficient and competitive. Further strategic development is now on the agenda. Put simply: three pillars with new options for the future.