RWE Group is a German electric utilities headquartered Essen.
It is operating in electricity generation, distribution, renewable energy, natural gas exploration, production, transportation and distribution. With 60000 employees, 16 million electricity customers and
7 million gas customers, RWE is one of Europe’s five leading electricity and gas companies in terms of sales – 3rd in electricity and 5th in gas. Its major markets are Germany, Netherlands, the UK and Central Eastern and South Eastern Europe.
The company was established as Rheinisch-Westfälisches Elektrizitätswerk Aktiengesellschaft in 1898 and started operations in 1900. Most recently, RWE sold its oil & gas production unit, RWE Dea at $5.6 billion in March 2015. The group functions through its 8 subsidiaries:
• RWE Generation for conventional power generation
• RWE Deustschland for supply/distribution networks in Germany
• Essent for supply in Netherlands and Belgium
• RWE npower for supply to the UK
• RWE East for Central Eastern and South Eastern Europe
• RWE Innogy for renewables
• RWE Supply & Trading for trading/gas midstream
The combined power generation capacity is 208 billion KWh, with nearly 60% of its energy coming from coal or its variants and only 5% coming from renewables, with the remaining coming from nuclear energy or gas. In order to produce cleaner and greener energy RWE has allocated investments of up to € 1 billion from 2015 to 2017. However, the reliance on conventional energy has enabled RWE to react better to the fluctuations of green energy. Investments are underway to improve flexibility of the plants especially gas-fired ones, which can typically switch loads rapidly.
In order to cope up with the future legislative changes in European energy sector, the company has launched RWE 2015 programme. It aims at giving comprehensive measures to reduce costs and increase revenue by decreasing investment and reducing debt to create a robust financial backbone.