Fair Winds, New Capacity Lift RWE’s 2023 Offshore Wind Earnings

RWE has reported an adjusted EBITDA of nearly EUR 1.7 billion in its offshore wind segment for 2023, compared to EUR 1.4 billion for the previous fiscal year. The increase in earnings is due to the commissioning of new capacity and better wind conditions, according to the company.

Kaskasi offshore wind farm in Germany; Photo source: RWE

Electricity generation from renewable energy at RWE rose by 27 per cent last year, with its wind business marking 9 per cent growth, primarily driven by more favourable weather conditions and the expansion of generation capacities. Last year, the company’s 857 MW Triton Knoll offshore wind farm in the UK and 342 MW Kaskasi in Germany had all their turbines online for the full year for the first time.

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“Wind levels were more favourable than in the prior year, especially at our UK offshore sites. In addition, electricity volumes which are not subject to guaranteed remuneration agreements and which we traded on the forward market, sold well. Our Kaskasi wind farm (342 MW) in the North Sea increased its contribution to earnings, as this was the first full year all its turbines were online. Increased operating and development costs weighed on earnings,” the company states in its annual report.

In the UK, RWE owns and/or operates ten operational offshore wind farms whose total installed capacity is 3.86 GW, of which RWE’s pro rata share is 1.9 GW. These are Humber Gateway, Gwynt y Môr, Rhyl Flats, Robin Rigg, Rampion, London Array, Galloper, Greater Gabbard, Scroby Sands, and Triton Knoll.

At the end of 2023, the company’s offshore wind portfolio had a total installed capacity of approximately 3.3 GW (RWE’s share), with 2.5 GW more under construction: the 1.4 GW Sofia in the UK and the 1.1 GW Thor in Denmark.


The Germany-based offshore wind developer also has a number of projects in planning worldwide, with several leases secured that will see further investments in offshore wind.

“We have set our sights on upping our offshore wind capacity to 6 GW by the end of 2027 and then to 10 GW by the end of 2030. Geographically, these efforts will focus on North-West Europe and the USA. Certain countries in the Pacific could also prove relevant, such as Japan, where we entered the market in 2023: a consortium comprising RWE, Mitsui and Osaka Gas was selected to deliver an offshore wind farm off the west coast of the country,” RWE says.

RWE’s capital expenditure (CAPEX) totalled almost EUR 10 billion in 2023, more than double that in 2022 (EUR 4,484 million).

Of the total 2023 CAPEX (EUR 9,979 million), 69 per cent was poured into onshore wind and solar projects, 15 per cent went to offshore wind, and 10 per cent was allocated to hydro, biomass and gas.

According to RWE’s annual results, the developer spent EUR 5.15 billion on property, plant and equipment and intangible assets last year, up from EUR 3.3 billion 2022, and wind and solar projects in Europe and the US received most of the funds – with the single-largest expenditure item being the construction of the Sofia offshore wind farm in the UK.

The company says it plans to significantly increase its capital expenditure on property, plant and equipment and intangible assets compared to 2023, with substantial funds already earmarked for the construction of the Sofia and Thor offshore wind farms. The company’s main areas of investment beyond these projects are wind, solar and battery developments in Europe and the US.


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