RWE’s wind woes highlight transition challenge

Europe’s big utilities report mixed first-quarter earnings as switch to low carbon accelerates

First-quarter earnings at German utility RWE fell 47pc as the cold snap in Texas and lower wind speeds in northern and central Europe hit its wind power generation, highlighting the transition challenges faced by Europe’s biggest utilities. In its core business, including renewables, gas and trading, RWE reported adjusted Ebitda of €555mn ($670mn) in the first three months of 2021, down from €1,042mn in the previous year. “The decline in earnings can be attributed to the extraordinary burdens incurred due to the worst cold snap in a century in Texas and the fact that wind volumes in northern and central Europe were well below the above-average high levels experienced in the previous year,”