Tuesday, 1 January 2013

CASE 433 - RWE



RWE AG (until 1990: Rheinisch-Westfälisches Elektrizitätswerk AG), is a German electric utilities company based in Essen, North Rhine-Westphalia, Germany. Through its various subsidiaries, the energy company supplies electricity, water and gas to more than 20 million electricity customers and 10 million gas customers and 27 million water ccustomers principally in Europe. RWE is the second largest electricity producer in Germany. RWE previously owned American Water, the United States' largest investor-owned water utility, but this was divested in 2008. Subsidiary RWE Dea produces some of the oil and gas its parent sells (annual production is around 2 million m3 of crude oil (about 365,000 boe) and 3 billion m3 of natural gas (about 18 million boe, 49,300 boe a day). It's the largest German investor in Egypt (RWE Dea and RWE Power do business in Egypt). Also RWE has begun building more wind farms, a renewable energy business

Fuel mix disclosure

RWE produced in 2007 electricity from the following sources: 32.9% hard coal, 35.2% lignite, 1.1% pumped storage, 2.4% renewables, 13.6% gas and 14.9% Nuclear power. In total, the company produced 324.3 TWh of electricity in 2007, which makes it the 2nd largest electricity producer in Europe, after EdF. Electricity production at the German branch of RWE had in 2006 the following environmental implications: 700 µg/kWh radioactive waste and 752 g/kWh CO2 emissions. In 2010 the company was responsible for 164.0 MTon of CO2, In 2007 the company ranked between the 28th and the 29th place of emitters by country.

History

The company was founded in Essen in 1898 as Rheinisch-Westfälisches Elektrizitätswerk Aktiengesellschaft (RWE). It first power station started operating in Essen in 1900. In 1900 the local municipalities together owned the majority of the company. In 2003 Dr Dietmar Kuhnt was succeeded by Harry Roels as CEO of the company and then in 2007 Dr. Juergen Grossmann took over. In July 2012, Peter Terium took over as CEO. On August 14, 2012 RWE AG announced that the company will cut 2,400 more jobs to reduce costs. Previously the company has announced to eliminate 5,000 jobs and 3,000 jobs through divestments as anticipated of closing all nuclear reactors by 2022.

Operations

RWE subsidiaries include:

RWE Power AG
RWE Energy
RWE Deutschland AG
RWE npower
RWE Dea AG
RWE Supply & Trading
RWE IT
RWE umwelt - environment, waste and water
RWE Innogy (new Renewables Company, from February 2008)
RWE Thames - Water



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