E.on needs investor backing for onshore wind plans - report
Aug 27, 2014 - German utility E.on SE (ETR:EOA) is inviting external investors to participate in the financing of its large-scale onshore wind projects because the company alone is no longer able to satisfy the capital needs for the projects.
Luckily, financial investors view onshore wind as a “quite attractive” market, Mike Winkel, E.on board member in charge of renewables, told Reuters in an interview published on Tuesday. The German power company needs outside help to fund the schemes as it plans it own capital expenditure to plunge to some EUR 4 billion (USD 5.3bn) in 2016 from over EUR 8 billion in 2013. The reason for E.on’s reduction of own investments is its attempt to deal with a EUR-29.7-billion debt pile, Winkel has said.
The board member attributed the growth in renewable energy production to the decline in conventional generation. In 2013, about 15% of E.on’s earnings before, interest, tax, depreciation and amortisation (EBITDA) was contributed by renewables.
At present, the group has approximately 10,900 MW of renewable energy capacity globally, including hydropower. For now, E.on’s wind farms are located in the US and the UK, but the company plans to grow its sector presence in both Europe and the North American country. It is currently developing onshore wind projects in Turkey as well, Winkel added.