E.ON reports 50% increase in renewables capacity in 2009
Wednesday 10 March 2010
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| The Robin Rigg wind farm is expected to be completed later this year |
E.ON's annual report has shown the company increased its renewables capacity by 50% over 2009 and signalled its intent to escalate this trend.
The German company's Climate and Renewables division claimed that its wind, solar, hydro and biomass projects in Europe and North America had a total capacity of around 3GW - of which UK wind and biomass contributed 245MW - and a generating capacity of 2,957MW in 2009, up from 1,979MW in 2008.
The addition of new onshore wind capacity in the U.S. accounted for the upswing and a subsequent rise in the Climate and Renewables division's earnings before interest and tax from €66 million (£60 million) in 2008 to €146 million (£133 million) in 2009, the company said.
Wind farms accounted for 96% of Climate and Renewables' owned generation, with biomass and micro-hydro facilities accounting for the remainder.
Encouraged by binding EU and member state targets, E.ON plans to grow its renewables business further by investing about €8 billion (£7.3 billion) from 2007 to 2011.
It aims to have around 10GW of renewables capacity by 2015 and by 2030 it plans for renewables to account for about one third of the company's installed capacity.
Wind and solar are the two areas highlighted for growth, with E.ON reiterating its ambition to develop solar to be the "second key area" of its renewables business alongside wind (see this NewEnergyFocus.com story).
In the chief executive's letter, Dr Wulf Bernotat said that such investment would ensure E.ON remained "a profitable and sold investment for the long term."
"Our investment strategy is guided by a clear vision of tomorrow's energy world," he wrote.
"In the last two years we've achieved unprecedented growth in wind power and have already become one of the world's largest wind-power producers. In 2009, we established solar energy as our second key renewables technology.
"These investments will help create a solid platform from which E.ON can start off strong when the current economic crisis ends."
Our investment strategy is guided by a clear vision of tomorrow's energy world
UK
Although much of the €1,031 million (£941.7 million) the Climate and Renewables division's invested over 2009 went towards large wind projects in the United States, there was also progress noted in the UK.
In September, the 180MW Robin Rigg offshore wind farm began exporting electricity to the grid (see this NewEnergyFocus.com story) and E.ON said it expected the project to be complete later this year.
The company also owns a 30% share in the London Array, the world's largest offshore wind project, which should have a capacity of 630MW by the end of the first phase in 2012, rising to 1GW when fully operational.
Meanwhile, E.ON said it had 400MW of biomass projects at various stages in development including of the UK's largest biomass plants, the 150MW Royal Portbury Dock project (see this NewEnergyFocus.com story) and the 25MW Blackburn Meadows project in Sheffield.
It also currently operates a 44MW wood-burning power station at Steven's Croft, Lockerbie.
And, in February 2009 E.ON announced plans to buy, install and test a wave power device in UK waters, teaming up with Pelamis (see this NewEnergyFocus.com story). The two companies plan to test the second generation ‘sea-snake' Pelamis P2 in Orkney next year.
Europe
E.ON's renewables ambitions also expanded in Europe and North Africa over 2009.
Its solar business constructed its first PV plant in France and E.ON also invested in the Desertec project, which aims to harness the solar, and possibly wind, resource in North Africa to generate energy for both the region and Europe (see this NewEnergyFocus.com story).
In line with the German government's aim to meet 10% of the country's gas needs, the company also plans to increase its business in that sector.
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