On March 1, 2023, Germany’s RWE announced the successful closing of the acquisition of all the shares of Con Edison Clean Energy Businesses, Inc. (Con Edison CEB), a subsidiary of Consolidated Edison, Inc. The newly formed entity, named RWE Clean Energy, LLC, has 8 gigawatts of assets operating in most U.S. states, making it the fourth largest renewable energy company in the U.S., as well as the second largest owner and operator of solar panels in the country. RWE Clean Energy also has a development platform of over 24 gigawatts, one of the largest in the country. This transaction confirms RWE’s position as one of the world’s leading renewable energy companies.
High growth ambitions
The company believes that this acquisition will allow it to further develop its portfolio in wind, solar and battery storage. RWE Clean Energy already has a balanced portfolio of renewable energy projects, with about 60% of installed capacity in onshore wind and 40% in solar. It aims to achieve significant growth with a project pipeline of more than 24 gigawatts in onshore wind, solar and battery storage. In addition, the German company wants to expand its global offshore wind business into the growing U.S. market. RWE has won two auctions to lease offshore wind sites in 2022, in the New York Bight and in California, for a total potential installed capacity of approximately 3.9 gigawatts.
A commitment to the energy transition
RWE Clean Energy has approximately 1,500 employees in the U.S. with extensive experience in renewable energy and is committed to continuing the transition to clean energy. Mark Noyes, named CEO of RWE Clean Energy, said the company will provide one of the best work environments in the industry to attract and retain top talent, with the goal of making clean energy the number one source of energy in the United States.
The acquisition and additional growth are financed by borrowing. The purchase price for the acquisition of Con Edison CEB is based on an enterprise value of $6.8 billion. RWE had already planned to invest up to €15 billion gross in the U.S. as part of its Growing Green strategy, which calls for global investments of more than €50 billion gross in its green energy portfolio by 2030.
