E.ON strategy change sees nuclear staying under renewables

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How new is the new E.ON? On Wednesday evening, the Düsseldorf-based energy group announced its German nuclear power business will remain with the new E.ON, despite plans, announced last December, to spin off its fossil fuel business to the newly-established company, Uniper, thus leaving the new E.ON to concentrate solely on renewables.

The supervisory board has unanimously approved the decision to keep the German nuclear business and related activities in E.ON, stating that the group has "ceased to view its nuclear power business as a strategic asset."

In an ad-hoc statement, E.ON commented, "This does not affect the new corporate strategy and E.ON is planning to spin off a majority of Uniper with its businesses power generation in and outside Europe and global energy trading in 2016 to its shareholders. E.ON will focus on renewables, energy networks and customer solutions."

E.ON also said in the coming quarter it expects to incur impairment charges in the higher single-digit billion euro range, due to "persistently" low wholesale prices for both electricity and other commodities. "Insufficient policy and regulatory environment" are also said to be impacting the group’s profits.

For 2015, E.ON expects to achieve an EBITDA of between €7 billion and €7.6 billion and a net income of between €1.4 billion and €1.8 billion.

In a recent interview with pv magazine, Franco Gola, Head of Energy Solutions PV at E.ON Germany said the group is expanding its German PV business, with the solar sector an "an important and profitable market" for E.ON.