RWE Locks in 15-Year UK Wind Deal as Shares Test Record Territory

RWE secures 15-year PPA to supply 70 GWh of wind power annually to Breedon Group, boosting renewable revenue and aiding cement maker's emissions reduction targets.

The German energy group has secured a long-term power purchase agreement with British construction materials firm Breedon Group, underlining the growing appetite among industrial heavyweights for direct renewable energy procurement. The 15-year contract will see RWE supply 70 gigawatt-hours of wind power annually from January 2027, providing the Essen-based utility with predictable revenue streams while helping Breedon tackle its carbon footprint.

Initially, electricity will flow from the Gwynt y Môr offshore wind farm off the North Wales coast. From 2033, RWE will switch supply to the Brechfa Forest West onshore complex, a move designed to diversify generation sources and reinforce supply chain resilience. The deal represents a classic power purchase agreement, or PPA, that ties large-scale consumers directly to producers — a model RWE is actively scaling across Europe.

For Breedon, the arrangement is a strategic lever in its decarbonisation push. The energy-intensive production of cement, asphalt and concrete weighs heavily on the company’s emissions balance sheet, and direct access to wind power offers a tangible reduction at source. Management has set a target of cutting emissions by nearly a quarter before the end of the decade.

Olaf Lubenow, RWE’s head of commodity solutions, described such partnerships as a core component in supporting critical industries through the energy transition. By locking in long-term offtake agreements, RWE insulates itself from the volatility of wholesale power markets while securing bankable cash flows for its growing renewables portfolio.

The news came as RWE’s share price hovered close to its 52-week high of €61.70, reached on 30 April. The stock closed at €59.50, marking a 27% gain since the start of the year and an 81% surge over the past twelve months. On Thursday, the Breedon announcement prompted little immediate movement, with shares edging slightly lower to €58.58.

Investors are now looking ahead to the first-quarter results, due on 13 May, when RWE will host an analyst and investor conference. The company has guided for adjusted EBITDA in a range of €5.2 billion to €5.8 billion for the full year 2026, supported by new wind and solar capacity, battery storage additions, and improved wind farm utilisation from more favourable weather conditions.

The capital return story remains firmly in play. Between 27 and 30 April, RWE repurchased approximately 68,500 of its own shares under the third tranche of its 2024–2026 buyback programme. The annual general meeting, held in late April, overwhelmingly renewed the authorisation for further share buybacks, reinforcing a long-term capital return strategy.

Underpinning all this is a €35 billion net investment plan running to 2031. RWE aims to expand its renewable energy capacity to around 65 gigawatts — a 25-gigawatt increase — with a targeted return on invested capital above 8.5%. The company expects adjusted earnings per share to grow at an average annual rate of 12% through 2031, while dividends are set to rise by 10% each year.

Analyst sentiment remains strongly bullish. Nearly 80% of the 23 analysts covering the stock rate it a buy, with only 7% recommending a sell. The upcoming quarterly numbers on 13 May will be the next key test of whether RWE can close the gap to its recent high and sustain the momentum that has carried it through a remarkable 12-month run.