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Policy & Regulation

Regulatory uncertainty clouds outlook for RWE’s power plants

The German company’s conventional power plant fleet is facing a challenging regulatory environment, but improved profit margins for gas-fired plants could boost earnings in the future The German company’s conventional power plant fleet is facing a challenging regulatory environment, but improved profit margins for gas-fired plants could boost earnings in the future.
By Andreas Walstad 15 March 2019 Europe & Russia / Policy & Regulation 0 34042
RWE's Neurath coal-fired power plant in Germany. (PA)

The suspension of capacity auctions in the UK coupled with the phase-out of coal-fired power in Germany and the Netherlands are just two of the regulatory uncertainties facing German power giant RWE. However, the company will be hoping an improvement in the profit margins for its gas-fired power plants will support the expansion of its renewable capacity following an asset swap with E.On.

RWE boasts around 14 GW of installed gas-fired capacity in Europe,...