Germany's RWE Acquires Con Edison Clean Energy in $6.8 Billion Deal

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Germany-based power producer RWE AG signed a purchase agreement with Con Edison to acquire all shares in Con Edison Clean Energy Businesses (CEB) for a purchase price based on an enterprise value of $6.8 billion.

The purchase will be partly funded by RWE issuing a $2.43 billion convertible bond to a Qatar Investment Authority (QIA) unit, through which the QIA will become a 9.1% shareholder in RWE.

The unique combination of RWE and Con Edison businesses will result in a complementary portfolio across wind, solar, and battery storage. Over 1,400 employees from both companies will be employed to form a team committed to the green energy transition.

The transaction will nearly double RWE’s U.S. renewables portfolio to more than 7 GW and grow its regional project pipeline by 7 GW to more than 24 GW. Once completed, this is expected to make RWE the fourth largest renewable energy company and the second largest solar operator in the U.S.


Headquartered in Valhalla, New York, Con Edison CEB is an operator and developer of renewable energy plants with about 3 GW of operating capacity. It accounts for 90% of solar energy and has a  development pipeline of more than 7 GW. After the takeover, solar would account for 40% of RWE’s U.S. portfolio, up from 3%.

“Our equity capital measure is the basis for financing the acquisition of Con Edison CEB and of the additional green growth in the years to come,” RWE Chief Executive Markus Krebber said. “I am delighted that QIA is supporting RWE’s accelerated growth ambitions with their capital commitment.”

Expansion in the US 

RWE’s expansion in the U.S. comes as Germany is battling the impact of a complete halt in Russian gas supplies. The U.S. plays a key role in RWE’s strategy to grow its renewables business and become carbon neutral by 2040.

RWE operates, constructs, and owns some of the highest-performing wind, solar, and battery storage projects in the U.S. The company has more than 30 projects in operation in the country, with a total installed generation capacity of 4.1 GW in onshore wind, solar, and batteries. In addition to onshore wind, solar, and batteries, RWE is also developing offshore wind.

The deal comes nearly a year after RWE fleshed out its global renewable roadmap, which includes €50 billion ($49 billion) of gross investments by 2030, with €15 billion (~$14.71 billion) reserved for the U.S.

The closing of the transaction is subject to customary regulatory approvals and is expected to take place in the first half of 2023.

Recently, RWE acquired Alpha Solar, a Polish PV solar developer, and took over a 3 GW solar project pipeline. In June, RWE and offshore solar energy developer SolarDuck inked a collaboration agreement to develop floating solar parks in the sea and integrate them into an offshore wind farm.