E.ON to focus on renewables and spin off fossil fuels
Germany’s biggest utility, E.ON, has announced that in order to respond to the “transformation of the energy world” it will shift its focus to renewables, distribution networks and customer solutions.
In a statement the firm revealed its intentions to combine its conventional generation, global energy trading and exploration and production businesses in a new, independent company. The majority of this company will be spun off to E.ON shareholders. The new setup, which is expected to be implemented in 2016, is part of a new strategy discussed by the company’s supervisory board.
E.ON will now have three core businesses – renewables, distribution networks and customer solutions – that it states will fit together to create a business portfolio with stable earnings and strong growth potential.
E.ON supervisory board chairman Werner Wenning commented, “We are convinced that it’s necessary to respond to dramatically altered global energy markets, technical innovation, and more diverse customer expectations with a bold new beginning.
“E.ON’s existing broad business model can no longer properly address these new challenges. Therefore, we want to set up our business model significantly different, E.ON will tap the growth potential created by the transformation of the energy world. Alongside it we’re going to create a solid, independent company that will safeguard security of supply for the transformation.”
In recent years Germany has seen renewable energy sources growing and gradually replacing old gas and coal-fired power plants. E.ON’s move intends to take advantage of this.
Photo: EON Vertrieb via Flickr
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