German Giant E.on to Increase Investment in Energy Transition

German energy group E.on has met the demands of European authorities and announced its intention to increase investment in the energy transition in Europe by 9 billion euros. The energy giant will invest 42 billion euros in sustainable technologies between 2024 and 2028, rather than the 33 billion euros envisaged in the previous program. In a press release, E.on emphasized that the group’s goal is to “invest in a secure, competitive, and sustainable energy system.”

First of all, a large-scale operation for technological modernization of existing power transmission networks and construction of new infrastructure will be deployed. The investment will amount to 34 billion euros, of which more than 25 billion will be allocated to Germany. “What Europe will need in the coming years is a smart energy infrastructure for sustainable, secure, and affordable energy,” told E.on CEO Leonard Birnbaum, who believes “the company is focused on implementing this ambitious program” to the German newspaper Frankfurter Allgemeine Zeitung

To achieve all the targets set by the European Commission, huge investments must be made to meet the demand for new energy infrastructure. E.on’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 16% year-on-year to €9.4 billion in 2023, while net profit last year recorded a 12% increase to €3.1 billion. In the end, Birnbaum said the group expects adjusted EBITDA to be between €8.8 billion and €9 billion in 2024, and adjusted consolidated earnings should rise to more than €11 billion by 2028.