RWE Group
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This article is part of the Nuclear Spin project of Spinwatch. |
Contents
Introduction
RWE is one of Europe’s five leading electricity and gas companies and is the No. 1 power producer in Germany, No. 2 in the Netherlands and No. 3 in the UK. The company is also expanding in Central Eastern and South Eastern Europe. [1]
RWE has 72,000 employees; it supplies almost 17 million customers with electricity and nearly 8 million customers with gas. In the financial year 2011-12 the company generated just below €52 billion in revenue. RWE says it is one of Europe’s biggest investors in offshore wind farms. [2] RWE Group had an electricity generating capacity of 49.2GW in the financial year 2011-12 generating 205.7 billion kWh.
Seven divisions
RWE Group is divided into seven main divisions:-
· RWE Power – Germany’s biggest power producer; the company produces lignite and generates electricity from coal, lignite, nuclear fuel, gas and renewables.
· RWE DEA – produces gas and oil mainly in Europe and North Africa
· RWE Gas Midstream – gas procurement, transport and storage.
· RWE Trading – trades electricity, gas, coal and oil.
· RWE Energy – sales and grid company in Continental Europe.
· RWE npower – UK electricity generation and sales of gas and electricity. Originally established as National Power, which along with PowerGen was one of two (non-nuclear) successor companies to the state owned Central Electricity Generating Board after privatization.
· RWE Systems – internal service provider.
The RWE Group produced 312.1 billion kWh of electricity during the financial year 2006, of which 96.8 were by RWE Power; 158.7 by RWE Energy and 56.4 by RWE npower.
Nuclear operator
RWE Power has been operating nuclear power stations since the beginning of the 1960s. Currently, nuclear energy provides around 28% per cent of Germany's electricity needs. RWE Power owns the Biblis nuclear power plant, which is home to two PWRs [Biblis A – 1167MW opened in 1974 and Biblis B – 1240MW opened in 1976].
RWE also owns 87.5% of the Emsland nuclear power station (the other 12.5% is owned by Eon) which has a 1329MW PWR which opened in 1988.
Finally RWE owns 75% of the Gundremmingen nuclear power facility (25% Eon) which houses 2 BWRs (Gundremmingen b – 1284MW and Gundremmingen C – 1288MW – both opened in 1984). Altogether this gives RWE an installed and operational nuclear power station capacity of some 5,700 MW. [3]
Under the German phase-out law, RWE can operate Biblis A & B until about 2012 and Emsland until at least 2020. Pending provision of a permanent storage facility by the federal government in 2030, spent fuel elements are now stored at the power plants. [4] Renewables
Like most utilities, RWE declares its support for renewable energy, but Harry Roels, the outgoing chief executive, has made it clear that he believes Europe will need nuclear power and clean coal to avoid too much dependency on imported fuel. By 2020, the European Commission wants 20 percent of all electricity generated in Europe to come from renewables. RWE says it wants to make a major contribution to this. In Germany alone, some 60,000 MW of generating capacity will need to be replaced as it reaches the end of its life and nuclear stations are phased out. RWE says it will have to replace half of its installed capacity.
In the UK, RWE npower built the first offshore wind farm at North Hoyle off the coast of North Wales. [5] RWE npower, is also investigating the feasibility of building a new type of wave power plant off the coast of Siadar, a small village on the Isle of Lewis. Located in a breakwater-type structure, the electricity turbines would be driven by airstreams created by the waves. The demonstration project could have a capacity of three to four megawatts. [6]
RWE says onshore wind power has almost run out of options in Germany, but the company plans to expand its capacity offshore in the Irish Sea and onshore in Spain and France.
New nukes
In February 2007, Eon AND RWE, were reported to be on the point of striking a deal with Westinghouse, to work together on Britain’s next generation of nuclear power stations. According to internal documents seen by the Business Magazine, the three companies are pushing to finalise an agreement before the publication of the Government’s energy white paper. The combined approach will be the first time all three power companies have come together to work on a project and is an indication of the role consortia could play in the construction of the next generation of UK power stations. As part of the agreement, the companies will submit a joint application for a licence for Westinghouse’s AP1000 reactor design, which will cost as much as £2bn ($3.9bn, E3bn) each to build. The deal could then be extended to include joint applications for a licence for a particular site and eventually stretch to constructing a new power plant in a consortium. The white paper is expected to trigger licence applications from the world’s leading nuclear power plant designers: France’s Areva, which designs the European pressurised reactor; Westinghouse; GE Energy; and Atomic Energy Canada Ltd. [7]
However Westinghouse said the report that it had formed a consortium with RWE and Eon was merely speculation. The Company said it was involved in talks "with all utilities interested in new European nuclear construction". [8]
UK expansion plans
In the UK, RWE npower is planning to build two new Combined Cycles Gas Turbine plants at Pembroke and Staythorpe (Nottinghamshire). The Company also plans to invest £100m in three new wind farms with a capacity of around 100MW. But if the government gives the go-ahead to new nuclear plants and there is "social acceptance" it could get involved in new nuclear build in the UK. Rumours that RWE might try to buy Scottish and Southern Energy, however, have been denied. [9]
The Company itself has been the subject of takeover speculation with Gazprom, the Russia Gas group seen as a possible predator. The company is seeking to tap into privatisation programmes as they emerge in Eastern European countries including Croatia, Hungary, Poland and Romania. [10]
RWE is a member of the European Atomic Forum (Foratom)
Notes
- ↑ Short facts about RWE , undated, RWE website, accessed 3rd September 2012.
- ↑ The RWE Group, undated, RWE website, accessed 3rd September 2012.
- ↑ Presentation by Dr. Hartmut Lauer on August 23, 2006, at Biblis Nuclear Power Plant for a RWE Power AG, Investor Meeting in Biblis.
- ↑ RWE Power website: Nuclear Power Plants.
- ↑ Switch on for UK’s first offshore windfarm, Greenpeace Press Release, 19 November, 2003.
- ↑ RWE Annual Report 2006 p. 136.
- ↑ Richard Orange, Power trio set to agree joint UK nuclear bid. The Business, 21 February, 2007.
- ↑ Platts Nuclear News Flashes, 22 February, 2007.
- ↑ David Gow, RWE rule out bid for Scottish and Southern Energy, The Guardian, 23 February, 2007.
- ↑ Joe Bolger, RWE douses speculation that it plans Scottish & Southern Energy bid, The Times, 23 February, 2007.
