By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF (Reuters) -Uniper will invest 5 billion euros ($5.8 billion) through 2030 mainly on renewable and gas-fired power plants, the German utility said on Thursday, in a strategy update that reflects more sober expectations for green energy markets.
The state-owned company said last year it would slow down an initial plan of investing 8 billion euros in its transformation by 2030, citing falling returns on renewable projects as well as a delay in the development of hydrogen markets.
The challenges have led several European utilities, including larger German peer RWE, to come under pressure from investors to review their capital allocations, forcing them to trim spending plans.
“The regulatory and geopolitical environment is challenging,” Uniper CEO Michael Lewis said, citing delays to German government plans to build new gas-fired power plants as well as the slow hydrogen ramp-up.
“Consequently, we have decided to sharpen the strategic focus of our portfolio through 2030 even more on activities and projects that generate reliable earnings streams.”
Most of the 5 billion euros will be spent on expanding Uniper’s renewable and gas-fired power plant portfolio, the group said, adding it plans to have 15-20 gigawatts of generation capacity by 2030.
At least half of that capacity is expected to be green, Uniper said, adding this would cover sources such as solar, wind and hydro, but also nuclear and new gas-fired power plants that can eventually run carbon neutral down the line.
The company also said it plans to expand its liquefied natural gas portfolio to 250-300 terawatt hours a year over the medium-term.
($1 = 0.8570 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff. Additional reporting by Vera Eckert. Editing by Kirsti Knolle and Mark Potter)