RWE, Germany’s biggest power producer, today announced deep cuts to its planned offshore wind activity in the US. In a statement, the company announced that going forward, it will reduce these sorts of efforts to their lowest possible levels beginning March 2025. RWE has not publicly ruled on whether its offshore wind projects are fully stopped. Yet, this decision is the unmistakable sign of a sea change in the company’s strategy for the US market.
Markus Krebber, RWE’s CEO, stated, “In the US… we have stopped our offshore activities for the time being.” This announcement comes after RWE has run into obstacles on furthering its renewable energy plans in the area. The reduced-down routine includes the Canopy overseas wind venture off Northern California. This project is still a decade or more from completion, not expected until around 2034.
RWE currently has three offshore wind leases in US waters, located near New York, Louisiana, and California. Just this past spring, the company won a lease just south of Louisiana’s coastal border for $5.6 million. Canopy’s intention was for the project to begin generating electricity in the early 2030s. That’s enough energy to power over a million homes!
Even with this reduction in offshore wind operations, RWE still holds a considerable stake in the US renewable energy market. Both are true statements, but almost half of RWE’s installed renewable capacity is located here in the United States. In 2022, the company made a substantial investment of $1.1 billion to secure an area lease, underscoring its commitment to expanding its operations.
RWE has made a number of big offshore moves recently. Separately, the firm entered into a ten-year corporate power purchase agreement with five independent UK cooperatives. This ambitious pivot underscores the company’s persistence to diversify its renewable energy assets amid shifting market realities.