RWE to close three more Europe plants amid electricity glut

|About: RWE AG ADR (RWEOY)|By:, SA News Editor

RWE (OTCPK:RWEOY) says it will close three unprofitable power plants, in addition to 10 closures previously announced, because subsidized renewable energies have created an electricity glut in Europe.

RWE says the latest plant closures would remove 1 GW of capacity from the German market, bringing overall capacity coming offline to nearly 6.3 GW by the end of 2017; the company also has ended power purchase agreements with other utilities with a total capacity of 2.7 GW.

The impact of the policies was felt in RWE's H1 results, announced today: Net profit excluding one-time items such as asset sales fell 62% Y/Y to €749M, on a 10% decline in revenue to €25.1B.