German E.ON Supports U.S. Clean Power Plan

Written By Christian DeHaemer

Posted August 26, 2015

President Obama’s Clean Power Plan aims to cut emissions in the U.S. by encouraging the use of more renewable energy sources.

This will be a major boost to many U.S. solar and wind companies, as well as nuclear and natural gas power plants that will supplement production.

However, this doesn’t mean only U.S. companies can join the clean power movement.

German E.ON (ETR:EOAN), in fact, already has several wind and solar projects in the U.S. and plans to expand them as the CPP comes to fruition.

E.ON RenewablesThis expansion plan coincides with the company’s upcoming spin-off as well. E.ON announced last year that it will be transferring its oil and gas operations and fossil fuel power plants into a separate company called Uniper.

This won’t take place until early 2016, but the company is already focusing on its renewable assets in preparation.

“If we want to achieve global climate targets, then the U.S. has to take a key role and Obama is doing that now with the clean energy initiative that he has set up,” says E.ON Climate and Renewables CEO Micheal Lewis.

The U.S. is indeed becoming a major model for the global clean power movement, and support from Germany, the country which famously produced 78% of its energy purely from renewable sources earlier this year, will both boost this image and help speed up the already quickly growing clean energy market.

E.ON has already invested about $11.5 billion in renewable assets since 2007 and plans to invest another $1.14 billion per year moving forward.

However, this investment will not be based on any emissions restrictions as U.S. renewable investment is.

“We will not invest to meet some arbitrary target we’ve made up,” said Lewis. E.ON will have its own set of investment plans, which will not follow the needs of the Clean Power Plan, but will bolster it nonetheless.

To continue reading…

Click here to read the Reuters article.

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Christian DeHaemer

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Christian is the founder of Bull and Bust Report and an editor at Energy and Capital. For more on Christian, see his editor’s page.

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