EnBW is exploring a capital increase of around €3 billion due to a significant rise in investment needs for its green growth strategy. The energy company is in close discussions with its shareholders regarding this plan.
Increased investment needs for energy transition
German energy company EnBW is considering raising capital by approximately €3 billion to support its green growth strategy. This move is driven by the increasing investment required to achieve the company’s environmental goals. On Friday, EnBW announced that it is in ongoing discussions with its shareholders about this capital increase and other financing options. The decision to create the necessary conditions for such an increase will ultimately be made at the company’s general meeting.
EnBW’s investment program, which runs until 2030, is already set to allocate at least €40 billion for the energy transition. However, the company now anticipates that further investment will be needed, potentially increasing the total expenditure during this period to about €50 billion. The additional funds would primarily support the construction of new wind and solar power plants, hydrogen-capable gas power plants, and the expansion of both transmission and distribution networks. Additionally, EnBW aims to develop a new core hydrogen network and continue expanding its electromobility infrastructure.
EnBW, or Energie Baden-Württemberg AG, is a major German energy company that was established on January 1, 1997, through the merger of Badenwerk AG and Energie-Versorgung Schwaben AG (EVS). Headquartered in Karlsruhe, EnBW is one of the largest energy supply companies in Germany, focusing on electricity, gas, and water supply. The company is heavily involved in the energy transition, investing significantly in renewable energy sources such as wind and solar power, as well as in the development of smart grids and e-mobility solutions. EnBW aims to become climate-neutral by 2035 and is actively expanding its operations beyond Germany, with significant projects in countries like Sweden, Denmark, and the UK.
