Solar News

Thursday 13 August 2009

"Our objective is to develop solar energy into a strong second pillar of our renewables business" Dr Wulf Bernotat, E.ON chief executive

German energy giant E.ON has announced its intention to develop solar energy as a "second pillar" in its renewables portfolio, alongside wind power.

E.ON's chief executive Dr Wulf Bernotat announced the plans in a letter to shareholders, as the company yesterday (August 12) published its half yearly results to 30 June 2009.

Citing Desertec Foundation's proposals for a massive solar energy drive as "visionary", Dr Bernotat said solar exhibited potential on an industrial scale. The Desertec concept, which has been pioneered by a group of lawyers, environmental campaigners and academics, comprises the idea that energy from the North African desert could be harnessed to power Europe and the Middle East.

Dr Bernotat, said: "Our objective is to develop solar energy into a strong second pillar of our renewables business along with wind energy. A visionary project called Desertec shows the potential of solar energy when it's operated on a global scale."

The E.ON chief added that the firm was making "good progress" on its offshore wind portfolio, especially on the 1GW London Array project, in which the company holds a 20% stake.

Results

Dusseldorf-based E.ON claimed that its half yearly results demonstrated the company's resilience in the face of an economic downturn, with its gross earnings down just 1% to €5.7 billion (£4.9 billion).

But the weakness of the sterling against the euro meant that its earnings in the UK market took a hit, registering a decline in gross earnings down by 58% to €236 million (£203 million) compared to €563 million (£484 million) over the same period in 2008.

E.ON said it expected its full yearly profits to decline by 5-10% on the annual results for 2008, but stressed that the prediction was subject to "more uncertainty than forecasts for previous years".

In the first half of 2009, wind assets accounted for 96% of E.ON's Climate and Renewables portfolio - which manages all the firm's renewables assets except large hydro - with biomass and micro-hydro assets accounting for the rest. Its owned generation rose by 67% on 2008, with capacity rising from 1.97GW to 2.38GW.

Subsequently, the Climate and Renewables' division's power sales across the world rose by 17%, with its gross earnings reaching €122 million (£104 million) compared to €62 million (£53 million) over the same period last year.