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ASML Returns to RWE for More Offshore Wind Power
RWE and ASML, the global supplier of lithography systems for the semiconductor industry, have […]
RWE announced the addition of flexible, gas-fired power generation to its U.S. portfolio, with plans to add 9 GW of new net capacity by 2031.
Germany’s largest power producer said that flexible gas would complement its existing 13 GW U.S. renewables and battery storage portfolio, strengthening its ability to meet “soaring” power demand.
The announcement comes as part of RWE’s global corporate strategy update, which affirmed the company’s global investment plans of €35 billion ($40.38 billion USD) net from 2026 through 2031 – of which €17 billion ($19.62 billion USD) net is allocated to enable growth in the United States.
RWE executives said the company’s U.S. gas strategy is centered on flexible generation in high-growth markets where power demand is rising rapidly, particularly from data centers. The company plans to leverage already-secured grid interconnections to develop a pipeline of 15 natural gas peaking projects across target markets in MISO, WECC, PJM and ERCOT.
In remarks tied to the company’s fiscal 2025 results, CEO Markus Krebber said said RWE does not want to build gas generation into the merchant U.S. market, but instead plans to pair gas with renewables and batteries in bundled offerings for customers seeking longer-term contracted supply.
The company argues that renewables and gas capacity deployed together can “optimize land use, share infrastructure, and improve energy reliability and efficiency allowing for speed to power and specific customer needs.”
“We want to combine it as a bundle with renewable, battery and the profile and then sell it to the customer,” said Krebber, adding that the company is targeting contract structures similar to renewables deals, with much of the value contracted over 10 to 15 years.
In Q&A with analysts and investors, Krebber said RWE has not yet secured equipment for the projects, but does not view supply chain constraints as a major concern because the company’s U.S. plans are focused on peakers and engines rather than combined-cycle gas turbines, where equipment availability is tighter.
That said, the company plans to move quickly.
“Our goal is to take the first FID this year and have the first megawatts operational by the end of the decade,” said Krebber. He added that the company intends to leverage its existing U.S. renewables footprint, market presence and interconnection position as it builds out the gas strategy.
RWE has existing gas units in the U.K., Germany, the Netherlands and Turkey.
