- Power demand is continuing to grow. The US already has continuously strong load growth, the UK reached a turning point for rising demand over the last two years, and the EU is expected to follow suit. All of this is driven by the rise of electrification and especially AI.
- At the same time, we are seeing a cost-of-living crisis, where higher energy prices play a central role. Contrary to claims made by some populist voices, this is not caused by the energy transition itself. The main drivers are the need for significant investment amid growing demand, supply chain disruptions following geopolitical challenges, and the fact that capital-intensive businesses need to bear higher interest rates. Costs are rising across all CapEx-intensive sectors – from housing to electricity supply – making technology and infrastructure more expensive across the board.
- Meeting rising energy demand and mitigating high energy costs require an all-of-the-above strategy. We need the right combination of additional investments in wind and solar, storage, flexible generation, and the grid buildout, which has been underinvested for decades.
- Delaying investments is not the answer. They will not become cheaper in the future. A missing future power supply will only lead to spiralling problems because it also means the basis of innovative technologies and therefore our future wealth is missing.
- Policymakers need to draw the right conclusions. Stable and reliable investment frameworks are necessary to create the confidence needed for multi-billion investments. Ideological flip-flopping will not cut it; drawn-out discussions on changing the rule book only scare investors. In our core markets, we are looking closely at the AR7 auction round in the UK and the urgently expected framework for new flexible generation to replace coal in Germany.
What this means for RWE:
We are forging ahead with an all-of-the-above strategy and continuing to invest heavily in low-carbon technologies in our core markets (US, UK, and EU) and in adjacent markets across the Asia-Pacific region. And we will add significant capacity in 2026 – around 4 GW, including our flagship offshore projects Sofia in the UK, Thor in Denmark, and Nordseecluster A in Germany.