21 December 2005 - E.ON plans to spend €18.6bn ($22bn) over the next two years securing supply through investing in new and existing power stations as well as improving its network of grids.
E.ON CEO, Wulf Bernotat, said: "In the next three years we will invest above all in highly efficient and environmentally friendly power stations, in state of the art power and gas grids and in gas production."
Almost 90 per cent of the total will be capital expenditure on property, plant and equipment and will serve to modernize or build power stations and grids.
Approximately €1.2bn will be spent on renewable energy while around €2.3bn has been earmarked for financial investments, especially in eastern Europe and in the gas production sector.
In Germany, the company plans to construct a new 1100 MW coal fired power station at Datteln and two combined cycle power plant units at Irsching in Bavaria. E.ON will also build a gas fired power station at Livorno Ferraris in Italy as well as a 1200 MW gas fired power station and a 450 MW coal fired power plant in the UK. It will also invest in a new cogeneration plant in Sweden along with several new wind energy farms.
Wind energy will receive the greatest amount of the investment set aside for renewables. E.ON will expand its transmission grids in Germany to connect new wind energy capacity and it has allocated €300m for investments in wind energy companies.
The majority of the funds it plans to invest in the US will be spent on introducing new environmental technologies at its existing plants as well as the upgrading of power and gas grids. Germany's largest utility will also construct a 750 MW coal fired power plant in the mid west region.