EnBW plans €3 billion capital increase to boost Germany’s energy transition
Author: PPD Team Date: 16/09/2024
EnBW is in discussions with its major shareholders about a potential capital increase of €3 billion to manage the rising costs of investing in Germany’s energy transition. The utility stated that the decision regarding a possible share issue will be made by shareholders at the annual general meeting.
EnBW, primarily owned by the German state of Baden-Wuerttemberg and local municipalities, anticipates its investments in energy projects could rise to €50 billion by 2030, up from the previously expected €40 billion. These investments will focus on new wind and solar parks, hydrogen-ready gas power plants, energy grid expansion, and electric mobility infrastructure.
The company acknowledged that the scale of these investments will create substantial capital requirements, beyond what can be covered by operating income alone. EnBW’s management is exploring financing options in response to these historically high investment needs.