On October first, 2022, RWE AG one of the largest renewable energy companies in the world, based out of Germany, purchased Consolidated Edison’s clean energy portfolio for $6.8 billion. A large part of the funding for the purchase comes from the Qatar Investment Authority through an RWE issued bond of $2.43 billion. Currently, RWE has about 3 gigawatts of operating capacity in the US, 90% of which is solar. The purchase of Con Edison’s clean energy business more than doubles RWE’s production capacity to 7.2 gigawatts. This makes RWE the fourth-largest renewable company in the US and the second-largest solar operator. The acquisition also helps RWE better diversify between onshore wind, solar, and batteries.
This acquisition comes at a time when Germany is facing a severe energy shortage. As a result, RWE is facing some harsh criticism. Enkraft Capital, an investor in RWE, stated, “it was “incomprehensible” how RWE could spend 7 billion euros on an M&A deal in the U.S. “amidst the biggest energy crisis Germany has ever seen”. Others support RWE’s acquisition including Con Edison CEO Timothy Cawley who said RWE is “well-positioned to accelerate the growth of renewable energy across the United States.”