RWE, Germany's largest utility, on Thursday said it would cut investments by more than a fifth until the end of the decade, citing global uncertainty around renewable energy returns that has forced major sector players to pare back spending plans.
Citing geopolitical risks as well as supply chain constraints, RWE said it was currently "impossible to predict" what the change in U.S. energy policy would mean for the expansion of renewables in the country.
About half of RWE's installed renewable capacity is based in the United States, where President Donald Trump has taken aim at offshore wind technology, an area where the German group is exposed through early-stage projects.
"As a result of stricter risk management and higher return expectations, we will invest less than previously planned through to 2030," CEO Markus Krebber said.
Frankfurt-listed shares RWEG.F in the company were 3.4% lower.
RWE, the world's second-largest developer of offshore wind farms, said it would pare back investments by 10 billion euros ($10.9 billion) to around 35 billion euros by 2030.
The company said it was also raising the return requirements for new investments to more than 8.5% from 8% previously.
Along with peers, RWE has faced a more challenging global investment environment for renewable energy projects, while investors have for some time criticised the company's capital allocation as a result.
RWE's decision to rein in spending follows similar moves by rivals Orsted and BP.
RWE said it expected adjusted core profit (EBITDA) of 4.55 billion euros to 5.15 billion euros in 2025, down from 5.68 billion in 2024. Adjusted net income is forecast to be between 1.3 billion euros and 1.8 billion euros, down from 2.32 billion.
($1 = 0.9180 euros)
(Reuters - Reporting by Christoph Steitz; Editing by Ludwig Burger, Sharon Singleton and Tomasz Janowski)