E.ON to invest 42 billion euros in Europe’s energy transition

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From 2024 through 2028, energy group E.ON plans to invest 42 billion euros in Europe’s energy transition. About 70 per cent of the investments will be made in Germany.

“We again defied challenging circumstances in the financial year 2023,” said CEO Leonhard Birnbaum. “And we again delivered very good results that exceeded our expectations. […] This makes E.ON one of the leading companies for the energy transition in Europe.”

“What Europe needs now is intelligent energy infrastructure for sustainable, secure and affordable energy,” he continued. “[…] This means that we will continue to make massive investments to meet the rapidly growing demand for energy infrastructure.”

Adjusted Group EBITDA of 9.4 billion euros in the financial year 2023 was 1.3 billion euros above the prior-year level and also above the forecast range of 8.6 to 8.8 billion euros, which had been adjusted in July.

Energy Networks delivered the largest share of Group earnings. The segment’s adjusted EBITDA of 6.6 billion euros represents a 1.2 billion euro year-over-year increase. Higher investments in E.ON’s growing network infrastructure were a key driver of this positive development. This ensures that the company can continually connect renewables, heat pumps and charging infrastructure and give customers across Europe access to sustainable energy. In 2023, E.ON added more than half a million new connections to its distribution networks.

The Group invested 5.2 billion euros in network expansion, modernisation and digitalisation in 2023, about 35 per cent more than in the prior year. Now, the company will significantly increase its planned investments for the next five years, investing 42 billion euros from 2024 through 2028. Of this figure, 34 billion euros will go towards its Energy Network business, given a suitable regulatory environment. More than 25 billion euros of network investments will be made in Germany. Around 5 billion euros will be devoted to Energy Infrastructure Solutions, E.ON’s growth business which provides solutions for industries, cities and municipalities. Other areas for investment include digitalisation projects, the rollout of smart metres and intelligent eMobility charging solutions.

“We’ll continue our growth path in the years ahead,” commented CFO Marc Spieker. “Across Europe, there are massive expansion plans for renewable energy facilities that will need to be connected to networks. Millions of heat pumps, residential electricity storage systems and charging stations will need to be installed as well. That’s why we’re investing even more and even faster in our power grid infrastructure, which is set to continuously grow by an average of ten per cent annually through 2028.”

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